Question
An auditor from the Deloitte accounting firm was assigned to evaluate reimbursements by Blue Cross of Idaho for office visits to physicians in Southeast Idaho.
An auditor from the Deloitte accounting firm was assigned to evaluate reimbursements by Blue Cross of Idaho for office visits to physicians in Southeast Idaho. The audit is to be conducted for all Blue Cross payments in Southeast Idaho during November. Historically, it has been shown that the data is normally distributed. Suppose the audit is conducted on a random sample of 100 reimbursements with the following results:
In 11 of the office visits, an incorrect amount of reimbursement was provided
At the 0.05 level of significance, is there evidence that the proportion of incorrect reimbursements is greater than 10%?
7 steps hypothesis is possible
z score
and p-value
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