Question 5 The Department of Health is concerned about the consultant fee charged by doctors. The department has set a maximum charge of R246 per visit that doctors may charge their patients. A random sample of 368 doctors was selected and it was found that the average consultation fee the doctors charged was R328 with a population standard deviation of R29. Assume the consultation fees charged by the doctors are normally distributed. Use the hypothesis testing outlines below to test, at the 5% level of significance, whether the majority of doctors charged more than the department's set maximum fee. Use a critical value of 1.645.

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Question 5
The Department of Health is concerned about the consultant fee charged by doctors. The
department has set a maximum charge of R246 per visit that doctors may charge their patients.
A random sample of 368 doctors was selected and it was found that the average consultation fee
the doctors charged was R328 with a population standard deviation of R29. Assume the
consultation fees charged by the doctors are normally distributed.
Use the hypothesis testing outlines below to test, at the 5% level of significance,
whether the majority of doctors charged more than the department's set maximum
fee. Use a critical value of 1.645.
5.1
Write down the claim.
5.2 Formulate the H0 and H1 hypothesis
5.3
State the decision rules
5.4 Determine the sample test statistic. Show all your calculations.
5.4
Compare the sample statistic to the area of acceptance.
5.5
Write down the conclusion.
Transcribed Image Text:Question 5 The Department of Health is concerned about the consultant fee charged by doctors. The department has set a maximum charge of R246 per visit that doctors may charge their patients. A random sample of 368 doctors was selected and it was found that the average consultation fee the doctors charged was R328 with a population standard deviation of R29. Assume the consultation fees charged by the doctors are normally distributed. Use the hypothesis testing outlines below to test, at the 5% level of significance, whether the majority of doctors charged more than the department's set maximum fee. Use a critical value of 1.645. 5.1 Write down the claim. 5.2 Formulate the H0 and H1 hypothesis 5.3 State the decision rules 5.4 Determine the sample test statistic. Show all your calculations. 5.4 Compare the sample statistic to the area of acceptance. 5.5 Write down the conclusion.
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