Question

Suppose that 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. What is the correct hypothesis statement for this hypothesis test? 0 A. Ho x-S3.300, H1 :#53300 ??. ?? ?#53,300, ??.?-33,300 O c. HOP 2 $3.300, HI : < $3,300 0 . ??.?-33,300, ??: ?#53,300

Answer 1

We have to test the average monthly rate for one bedroom assisted-living facility is equal to $3300.

This is two tailed test.

H0: $\mu$ = $3300, H1: $\mu$ $\neq$ $3300