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.