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1) Guidelines for the Jolly Blue Giant Health Insurance Company say that the average hospitalization for a triple hernia operation should not exceed 36 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.". Using the .025 level of significance, conduct a Hypothesis test. a) State the Null and Alternate Hypothesis. b) Which test statistic does the data call for (which distribution)? Explain why you chose that distribution. c) State the decision rule and Critical Value. d) Compute the Test Statistic and p value. e) What is your decision concerning null hypothesis?

1) Guidelines for the Jolly Blue Giant Health Insurance Company say that the average hospitalization for a triple hernia operation should not exceed 36 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.". Using the .025 level of significance, conduct a Hypothesis test. a) State the Null and Alternate Hypothesis. b) Which test statistic does the data call for (which distribution)? Explain why you chose that distribution. c) State the decision rule and Critical Value. d) Compute the Test Statistic and p value. e) What is your decision concerning null hypothesis?

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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If n2 100, you may use normal distribution in all cases. 1) Guidelines for the Jolly Blue Giant Health Insurance Company say that the average hospitalization for a triple hernia operation should not exceed 36 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.". Using the .025 level of significance, conduct a Hypothesis test. a) State the Null and Alternate Hypothesis. b) Which test statistic does the data call for (which distribution)? Explain why you chose that distribution. c) State the decision rule and Critical Value. d) Compute the Test Statistic and p value. e) What is your decision concerning null hypothesis? f) Re-compute the test statistic and p-value if “n" is increased to 121 using the same mean and standard deviation. g) What is your decision then? h) What is the minimum sample size if the allowable error, E, is 2 at .025 level of significance.
Transcribed Image Text:If n2 100, you may use normal distribution in all cases. 1) Guidelines for the Jolly Blue Giant Health Insurance Company say that the average hospitalization for a triple hernia operation should not exceed 36 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.". Using the .025 level of significance, conduct a Hypothesis test. a) State the Null and Alternate Hypothesis. b) Which test statistic does the data call for (which distribution)? Explain why you chose that distribution. c) State the decision rule and Critical Value. d) Compute the Test Statistic and p value. e) What is your decision concerning null hypothesis? f) Re-compute the test statistic and p-value if “n" is increased to 121 using the same mean and standard deviation. g) What is your decision then? h) What is the minimum sample size if the allowable error, E, is 2 at .025 level of significance.
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