A billing company that collects bills for doctors' offices in the area is concerned that the percentage of bills being paid by medical insurance has risen. Historically, that percentage has been 35%.

An examination of 9098,recent, randomly selected bills reveals that 36% of these bills are being paid by medical insurance. Is there evidence of a change in the percent of bills being paid by medical insurance? (Consider a P-value of around 11% to represent reasonable evidence.)

a) Write the appropriate hypotheses. Let p be the proportion of bills being paid by medical insurance.

b) Check the assumptions and conditions. Select all that apply. A. The 10% Condition is met. B. The Randomization Condition is met. C. The Success/Failure Condition is met. D. The Independence Assumption is met. c) Perform the test and find the P-value. What is the test statistic? z equals=___ (Round to two decimal places as needed.)

What is the P-value? P-value equals=_____ (Round to three decimal places as needed.)

State your conclusion. A. Reject H0. There is sufficient evidence to suggest that the percentage of bills paid by medical insurance has changed. B. Reject H0. There isnot sufficient evidence to suggest that the percentage of bills paid by medical insurance has changed. C. Fail to reject Failtoreject H0. There isnot sufficient evidence to suggest that the percentage of bills paid by medical insurance has changed. D. Fail to reject Failtoreject H0. There is sufficient evidence to suggest that the percentage of bills paid by medical insurance has changed.

e) Do you think this difference is meaningful? A. No, the conclusion of the hypothesis test shows that the difference has no financial significance to the company. B. Yes, the conclusion of the hypothesis test shows that the difference has financial significance to the company. C. Not necessarily. The difference isnot statistically significant, and the actual change in the proportion is small. We cannot tell from the P-value alone if the difference has financial significance to the company.