In a study of malpractice claims where a settlement had been reached, two random samples were selected: a random sample of 515 closed malpractice claims that were found not to involve medical errors and a random sample of 889 claims that were found to involve errors (New England Journal of Medicine [2006]: 2024– 2033). The following statement appeared in the referenced paper: “When claims not involving errors were compensated, payments were significantly lower on average than were payments for claims involving errors ($313,205 vs. $521,560, P = 0.004).”
a. What hypotheses must the researchers have tested in order to reach the stated conclusion?
b. Which of the following could have been the value of the test statistic for the hypothesis test? Explain your reasoning.
i. t = 5.00 ii. t = 2.65 iii. t = 2.33 iv. t = 1.47
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