A hypothesis test is to be performed. State the null and alternative hypotheses. -A health insurer has determined that the "reasonable and customary" fee for a certain medical procedure is $\$ 1200$. They suspect that the average fee charged by one particular clinic for this procedure is higher than $\$ 1200$. The insurer wants to perform a hypothesis test to determine whether their suspicion is correct. A) Null hypothesis: mean fee $= \$ 1200$ B) Null hypothesis: mean fee $ \$ 1200$ Alternative hypothesis: mean fee $ \$ 1200$ Alternative hypothesis: mean fee $= \$ 1200$ C) Null hypothesis: mean fee $= \$ 1200$ Alternative hypothesis: mean fee $\geq \$ 1200$ D) Null hypothesis: mean fee $ \$ 1200$

Question

A hypothesis test is to be performed. State the null and alternative hypotheses.
-A health insurer has determined that the "reasonable and customary" fee for a certain medical procedure is $\$ 1200$. They suspect that the average fee charged by one particular clinic for this procedure is higher than $\$ 1200$. The insurer wants to perform a hypothesis test to determine whether their suspicion is correct.
A) Null hypothesis: mean fee $= \$ 1200$
B) Null hypothesis: mean fee $> \$ 1200$
Alternative hypothesis: mean fee $> \$ 1200$
Alternative hypothesis: mean fee $= \$ 1200$
C) Null hypothesis: mean fee $= \$ 1200$
Alternative hypothesis: mean fee $\geq \$ 1200$
D) Null hypothesis: mean fee $< \$ 1200$
Alternative hypothesis: mean fee $> \$ 1200$

Quizplus · Accepted Answer

CThe null hypothesis typically states that there is no effect or no difference, which in this case would be that the mean fee equals $1200. The alternative hypothesis is what the researcher wants to prove, which is that the mean fee is higher than $1200. However, option C incorrectly formulates the alternative hypothesis; it should indicate a mean fee greater than $1200, not greater than or equal to. Therefore, the correct formulation is found in option A.

A Hypothesis Test Is to Be Performed $1200\$ 1200$1200 They Suspect That the Average Fee Charged by One

A Hypothesis Test Is to Be Performed $\$ 1200$ They Suspect That the Average Fee Charged by One