Question

A small business pays health insurance for its employees. According to a recent estimate, the average cost that employers pay for health insurance is μ= $4000 per year for a single employee in this industry. The manager of the small business is concerned that their costs are significantly different than the industry average. Data from a sample of employees is used.

Use data from "insurance" in Excel sheet provided to run the appropriate statistical test. Use α=0.01 . What do you conclude? Select ALL that apply!

		The result was statistically significant.
		The p-value was less than alpha.
		The result was NOT statistically significant.
		The p-value was NOT less than alpha.

insurance costs per employee
4499
4252
5497
3603
4240
4958
4389
4367
4501
3872
4449
4310
4116
5022
5050
4562
4368
4738
5417
3999
4999
4379
4367
4637
4703
4437
4287
4529
4262
4248

Answer 1

Using TI 84 calculator

press stat then edit then enter the given data values in L1

press stat again and then tests then TTest

select data as input

enter the data

List = L1

press enter, we get

t statistic= 6.618

p value = 0.0000

So, result is significant as the p value is less than significance level of 0.01, rejecting the null hypothesis and concluding that the mean is different from 4000

option A and B