A Hypothesis Test Is to Be Performed $\$ 1200$ They Suspect That the Average Fee Charged by One

question 67

Multiple Choice

A hypothesis test is to be performed. State the null and alternative hypotheses.
-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.

• A) Null hypothesis: mean fee \(= \$ 1200\)
• B) Null hypothesis: mean fee \(> \$ 1200\)
• Alternative hypothesis: mean fee \(> \$ 1200\)
• Alternative hypothesis: mean fee \(= \$ 1200\)
• C) Null hypothesis: mean fee \(= \$ 1200\)
• Alternative hypothesis: mean fee \(\geq \$ 1200\)
• D) Null hypothesis: mean fee \(< \$ 1200\)
• Alternative hypothesis: mean fee \(> \$ 1200\)

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