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13th Edition

Anderson

Publisher: CENGAGE L

ISBN: 9781305881884

Chapter 9.5, Problem 44E

Textbook Problem

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One of the reasons health care costs have been rising rapidly in recent years is the increasing cost of malpractice insurance for physicians. Also, fear of being sued causes doctors to run more precautionary tests (possibly unnecessary) just to make sure they are not guilty of missing something (*Reader’s Digest,* October 2012). These precautionary tests also add to health care costs. Data in the DATAfile named LawSuit are consistent with findings in the *Reader’s Digest* article and can be used to estimate the proportion of physicians over the age of 55 who have been sued at least once.

- a. Formulate hypotheses that can be used to see if these data can support a finding that more than half of physicians over the age of 55 have been sued at least once.
- b. Use Excel and the DATAfile named LawSuit to compute the sample proportion of physicians over the age of 55 who have been sued at least once. What is the
*p*-value for your hypothesis test? - c. At
*α =*.01, what is your conclusion?

**a.**

To determine

Identify the null and alternative hypotheses most appropriate for the given situation.

Here, the claim is that the proportion of physicians over the age of 55 who have been sued at least once is greater than 0.50. This can be written as

**b.**

To determine

Find the sample proportion of physicians over the age of 55 who have been sued at least once.

Find the *p*-value.

**c.**

To determine

Find the conclusion.

STATISTICS F/BUSINESS+ECONOMICS-TEXT

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