Question: For the March quarter 2017, it has been reported that the bulk-billing rate under Medicare for all Medicare Benefits Schedule (MBS) services was 78.7% (Australian

For the March quarter 2017, it has been reported that the bulk-billing rate under Medicare for all Medicare Benefits Schedule (MBS) services was 78.7% (Australian Government, Department of Health, Quarterly Medicare Statistics

Suppose the government proposes to make changes to scheduled fees and carries out a survey to see whether providers will bulk-bill under the new arrangements. The survey shows that 412 of 500 will bulk-bill.

a. At the 0.01 level of significance, is there sufficient evidence that the proportion of providers who bulk-bill will change from 78.7% under the new arrangements?

b. Calculate the p-value and interpret its meaning.

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