# Medical Malpractice In a study of 1228 randomly selected medical malpractice lawsuits, it was found that 856 of them were dropped or dismissed (based on data from the Physicians Insurers Association of America). Use a 0.01 significance level to test the claim that there is a difference between the rate of medical malpractice lawsuits that go to trial and the rate of such lawsuits that are dropped or dismissed.

Question
35 views

Medical Malpractice In a study of 1228 randomly selected medical malpractice lawsuits, it was found that 856 of them were dropped or dismissed (based on data from the Physicians Insurers Association of America). Use a 0.01 significance level to test the claim that there is a difference between the rate of medical malpractice lawsuits that go to trial and the rate of such lawsuits that are dropped or dismissed.

check_circle

Step 1

The hypotheses are given below:

Null hypothesis:

H0: There is no difference between the rate of medical malpractice lawsuits that go to trial and the rate of such lawsuits that are dropped or dismissed.

Alternative hypothesis:

H1: There is a difference between the rate of medical malpractice lawsuits that go to trial and the rate of such lawsuits that are dropped or dismissed.

Step 2

Test statistic:

Here, 856 of 1,228 medical malpractice lawsuits were dropped or dismissed and 372(=1,228−856) lawsuits that go to trial. The level of significance is 0.01.

Then, the minimum value among 372 and 856 is 372. That is,  x=372.

Here, the sample size 1,228 is greater than 25. Then, the test statistic x is to be converted into test statistic z.

The formula for calculating the test statistic z is,

Step 3

Critical value:...

### Want to see the full answer?

See Solution

#### Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in