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) ]