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    Hypotheses testing for insurance data

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    C. 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?

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    https://brainmass.com/statistics/students-t-test/hypotheses-testing-for-insurance-data-236112

    Solution Summary

    The solution provides step by step method for the calculation of hypotheses testing for insurance data . Formula for the calculation and Interpretations of the results are also included.

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