The Oregon Department of Health web site provides information on the cost-to-charge ratio (the percentage of billed

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The Oregon Department of Health web site provides information on the cost-to-charge ratio (the percentage of billed charges that are actual costs to the hospital). The cost-to-charge ratios for both inpatient and outpatient care in 2002 for a sample of six hospitals in Oregon follow.

Hospital 2002 Inpatient Ratio 2002 Outpatient Ratio 1 68 54 2 100 75 3 71 53 4 74 56 5 100 74 6 83 71 Is there evidence that the mean cost-to-charge ratio for Oregon hospitals is lower for outpatient care than for inpatient care? Use a significance level of .05.

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