A Health Insurer Has Determined That the "Reasonable and Customary $\$ 1200 .$

question 98

Multiple Choice

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)Lower-tailed
• B)Two-sided
• C)Upper-tailed

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Definitions:

Perpetual Inventory System

An accounting system that records inventory purchases or sales immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Merchandise Return

Occurs when a customer returns a product to the seller for a refund, exchange, or credit, affecting the seller’s inventory and sales figures.

State Sales Tax

A tax imposed by state governments on the sale of goods and services, which varies by state and is collected by businesses at the point of sale.

Sales Tax Payable

A liability account in the general ledger that stores the amount of sales tax collected from customers, which is owed to the government.