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 α =  0.05. The test statistic for this hypothesis test would be ________.

		1.98
		2.55
		-2.16
		-1.37

Answer 1

Solution :

This is the two tailed test,  

The null and alternative hypothesis is ,

H₀ :  $\mu$ = 3300

H_a : $\mu$   $\neq$ 3300

Test statistic = z

= (
T
- $\mu$ ) / $\sigma$ / $\sqrt$ n

= (3690 - 3300) / 530 / $\sqrt$ 12

Test statistic = z = 2.55