Question
A health insurance company is reviewing its rate schedule for Texas State employees. The company needs to know if the distribution of hospitalized days per
A health insurance company is reviewing its rate schedule for Texas State employees. The company needs to know if the distribution of hospitalized days per person has changed from last year, which is given in the table below. A random sample of Texas State workers is taken, and the numbers of these workers within each category is also in the table below.
At a 0.025 level of significance, should the insurance company change its rate schedule for this year; i.e., is the current distribution different from last year's proportions?
Enter expected values to 2 or less decimal places as required.
A | 0 | 1 | 2 | 3 | 4 or more |
B | 0.10 | 0.25 | 0.35 | 0.20 | 0.10 |
C | 3 | 16 | 35 | 25 | 21 |
D |
A = Days B = Last Year's Percentages C = Observed Values D = Expected Values
a What is the null hypotheses?
i The distribution of hospitalized days per person for Texas State employees has decreased from last year
ii The distribution of hospitalized days per person for Texas State employees has increased from last year
iii The distribution of hospitalized days per person for Texas State employees has changed from last year
iv The distribution of hospitalized days per person for Texas State employees has not changed from last year
b What is the Alternate Hypothesis?
i The distribution of hospitalized days per person for Texas State employees has decreased from last year
ii The distribution of hospitalized days per person for Texas State employees has increased from last year
iii The distribution of hospitalized days per person for Texas State employees has changed from last year
iv The distribution of hospitalized days per person for Texas State employees has not changed from last year
c This test is a:
i Right tail ii Left tail III Two Tail Iv Other
d The numerical value of is? (3 decimal places)
e The test Statistic distribution is?
i z ii t iii Chi Square Iv F
f The numerical value of the test statistic is? (3 decimal places)
g The numerical value of the pvalue is? (4 decimal places)
h The Statistical Decision is?
i Do not reject the Null ii Reject the Null III Insufficient data
j. The decision of the Statistical test in the terminology of the question.
i The distribution of hospitalized days per person for Texas State employees has decreased from last year
ii The distribution of hospitalized days per person for Texas State employees has increased from last year
iii The distribution of hospitalized days per person for Texas State employees has changed from last year
iv The distribution of hospitalized days per person for Texas State employees has not changed from last year.
j. If it is later determined that the Statistical decision was in error, what type of error would it be?
i Type 1 ii Type 2 III Insufficient data iv Neither
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