In: Statistics and Probability
Hypothesis test (2- sample)
The manager of a health insurance company in Toronto wonders whether the members needed more chiropractic help in 2018 than in 2017, on average. He found a random sample of those who were treated by chiropractic doctors in both years. Data provided in TERMTESTDATA file. Perform a Hypothesis test to check whether annual expenses increased, on average. For the test use Data Analysis t-Test: Paired Two Sample for Means and 1% significance level.
| Annual expenses | |
| 2017 | 2018 |
| 340 | 374 |
| 560 | 476 |
| 816 | 850 |
| 238 | 136 |
| 374 | 340 |
| 646 | 748 |
| 612 | 510 |
| 136 | 162 |
| 850 | 816 |
| 1054 | 1190 |
| 298 | 238 |
| 272 | 366 |
| 578 | 510 |
| 340 | 408 |
| 476 | 510 |
| 748 | 680 |
| 204 | 170 |
| 774 | 816 |
| 510 | 570 |
| 408 | 468 |
d = 2017 - 2018



We find result using R:-

Decision:-


Conclusion:-
There is no sufficient evidence to support the claim that annual expenses increased.