In: Statistics and Probability
Guidelines for the Jolly Blue Giant Health Insurance Company say that the average hospitalization for a triple hernia operation should not exceed 30 hours. A diligent auditor studied records of 16 randomly chosen triple hernia operations at Hackmore Hospital, and found a mean hospital stay of 40 hours with a standard deviation of 20 hours. "Aha!" she cried, "the average stay exceeds the guideline." The p-value for a right-tailed test of her hypothesis is:
Ho :   µ =   30  
           
   
Ha :   µ >   30  
    (Right tail test)      
   
          
           
   
Level of Significance ,    α =   
0.050          
       
sample std dev ,    s =    20.0000  
           
   
Sample Size ,   n =    16  
           
   
Sample Mean,    x̅ =   40.0000  
           
   
          
           
   
degree of freedom=   DF=n-1=   15  
           
   
          
           
   
Standard Error , SE = s/√n =   20.0000   / √
   16   =   5.0000  
   
t-test statistic= (x̅ - µ )/SE = (   40.000  
-   30   ) /    5.0000  
=   2.000
          
           
   
critical t value, t* =       
1.753   [Excel formula =t.inv(α/no. of tails,df)
]          
   
          
           
   
p-Value   =   0.0320   [Excel
formula =t.dist(t-stat,df) ]