A Hypothesis Test Is to Be Performed $\text { mean fee } > \$ 1200$

question 29

Multiple Choice

A hypothesis test is to be performed. Describe the two possible outcomes of the test using the context of the givensituation.
-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 hypothesis tests are as follows:
Null hypothesis: mean fee = $1200
Alternative hypothe $\text { mean fee } > \$ 1200$

• A)Rejecting the null hypothesis means there is evidence that the mean fee is greater than $1200. Failing to reject the null hypothesis means there is insufficient evidence to conclude that the
• Mean fee is greater than $1200.
• B)Rejecting the null hypothesis means there is evidence that the mean fee is greater than $1200. Accepting the null hypothesis means there is evidence to conclude that the mean fee is equal
• To $1200.
• C)Rejecting the null hypothesis means there is evidence that the mean fee is not equal to $1200. Failing to reject the null hypothesis means there is insufficient evidence to conclude that the
• Mean fee is greater than $1200.
• D)Rejecting the null hypothesis means there is evidence that the mean fee is greater than $1200. Failing to reject the null hypothesis means there is insufficient evidence to conclude that the
• Mean fee is equal to $1200.

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