Question

) Medicare would like to test the hypothesis that the average monthly rate for one-bedroom assisted-living facility is equal to $3,300. A random sample of 12 assisted-living facilities had an average rate of $3,690 per month. The standard deviation for this sample was $530. Medicare would like to set ΅ = 0.05. The test statistic for this hypothesis test would be ________.

A) z x = 1.98

B) z x = -1.37

C) t x = -2.16

D) t x = 2.55

Answer 1

Solution:

Given:Medicare would like to test the hypothesis that the average monthly rate for one-bedroom assisted-living facility is equal to $3,300.

thus Mean =

Sample size = n = 12

Sample mean =

Sample standard deviation = s = 530

We have to find the test statistic for this hypothesis test.

Since sample size n is small and population standard deviation is unknown , we use t test

Thus correct answer is: D) t x = 2.55