Conduct a Full Hypothesis Test and Determine If the Given $\sigma = \$ 210$

question 41

Multiple Choice

Conduct a full hypothesis test and determine if the given claim is supported or not supported at the 0.05 significance level. Round all amounts and standard scores to two decimal places.
-A health insurer has determined that the "reasonable and customary" fee for a certain medical procedure is $1200. They suspect that the average fee charged by one particular clinic for this procedure is higher than $1200.
The insurer wants to perform a hypothesis test to determine whether their suspicion is correct. The mean fee charged by the clinic for a random sample of 65 patients receiving this procedure was $1280. Test whether the claim that the mean fee charged by this particular clinic is higher than $1200 is supported or not supported. Assume that $\sigma = \$ 210$

• A)not supported
• B)supported

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Definitions:

Observational Data

Information collected through direct observation of behaviors, processes, or events, as opposed to data gathered through experiments or surveys.

Patronage

The support, encouragement, privilege, or financial aid that an organization or individual bestows to others.

Urban College

An institution of higher education located in an urban environment, often offering a diverse range of programs and access to rich cultural and professional opportunities.

Respondents

Individuals who answer or respond to surveys, questions, or experiments in research contexts.