Guidelines for the Jolly Blue Giant Health Insurance Company Say

question 118

Multiple Choice

Guidelines for the Jolly Blue Giant Health Insurance Company say that the average hospitalization for a triple hernia operation should not exceed 30 hours. A diligent auditor studied records of 16 randomly chosen triple hernia operations at Hackmore Hospital and found a mean hospital stay of 40 hours with a standard deviation of 20 hours. "Aha!" she cried, "the average stay exceeds the guideline." At α = .025, the critical value for a right-tailed test of her hypothesis is:

• A)1.753
• B)2.131
• C)1.645
• D)1.960

---

Definitions:

Monetary Policy

The process by which the central bank of a country controls the supply of money, often targeting an inflation rate or interest rate to ensure price stability and general trust in the currency.

United States Government Budget

The budget prepared by the federal government, outlining its projected revenues and expenditures for the forthcoming fiscal year.

Fiscal Year

A one-year period used by governments and businesses for accounting and budget purposes, which may not align with the calendar year.

Welfare Spending

Government expenditure on social protection programs intended to support the well-being of citizens, such as health care, unemployment benefits, and social security.