An Auditor Review for Surgery Insurance Claims
Not what you're looking for?
An Auditor reviewed 25 oral surgery insurance claims from a particular surgical office determining that the mean out of pocket patient billing above the reimbursed amount was $275.66 with a standard deviation of $78.11. (a) At the 5 percent level of significance, does this sample prove a violation of the guideline that the average patient should pay no more than $250 out of pocket? State your hypotheses and decision rule. (b) Is this a close decision?
Purchase this Solution
Solution Summary
The solution examines an auditors review for surgery insurance claims. A hypothesis and decision rules are determined.
Solution Preview
Hi,
a) We will perform a t-test
Null hypothesis: The average out of pocket expense for oral surgery is $250
Alternative hypothesis: The average out of pocket expense for oral surgery is more then $250
Our formula would be:
our cost - ...
Purchase this Solution
Free BrainMass Quizzes
Terms and Definitions for Statistics
This quiz covers basic terms and definitions of statistics.
Measures of Central Tendency
Tests knowledge of the three main measures of central tendency, including some simple calculation questions.
Measures of Central Tendency
This quiz evaluates the students understanding of the measures of central tendency seen in statistics. This quiz is specifically designed to incorporate the measures of central tendency as they relate to psychological research.
Know Your Statistical Concepts
Each question is a choice-summary multiple choice question that presents you with a statistical concept and then 4 numbered statements. You must decide which (if any) of the numbered statements is/are true as they relate to the statistical concept.