Question

In: Statistics and Probability

The manager of a health insurance company in Toronto wonders whether the members needed more chiropractic help in 2018 than in 2017

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
20172018
340374
560476
816850
238136
374340
646748
612510
136162
850816
10541190
298238
272366
578510
340408
476510
748680
204170
774816
510570
408468

Solutions

Expert Solution

d = 2017 - 2018

We find result using R:-

Decision:-

Conclusion:-

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


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