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An auditor for a government agency is assigned the task of evaluating reimbursement for office visits to physicians paid by Medicare. The audit was conducted

An auditor for a government agency is assigned the task of evaluating reimbursement for office visits to physicians paid by Medicare. The audit was conducted on a sample of 75 of the reimbursements, with the following results:

In 12 of the office visits, an incorrect amount of reimbursement was provided.

The mean amount of reimbursement was $93.70 with a standard deviation of $34.55.

  1. At the 0.05 level of significance, is there evidence that the population mean reimbursement was more than $100? (Use the critical value approach)
  2. At the 0.02 level of significance, is there evidence that the proportion of incorrect reimbursements in the population was below 0.10? (Use the p-value approach)

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