Question
Can you help me? A health insurer suspects that the average fee charges by one particular clinic for a medical procedure is higher than $
Can you help me?
A health insurer suspects that the average fee charges by one particular clinic for a medical procedure is higher than $ 1200. The insurer wants to [perform a hypothesis test to determine whether there suspicion is correct.
Ho: u <= $1200
Ha: u >$ 1200
Suppose that the test will be conducted at 5% significance level, and the insurer plans to randomly sample 50 bills from the clinic. What changes to the test can the insurer make to reduce the likelihood of committing a Type I error and Type II error?
Answers:
a. Increase the significance level to 10%
b.Lower the significance level to 1% and reduce the sample size to 36
c. Lower the significance level to 1% while also reducing the population standard deviation
d. Increase thee significance level to 10%, while keeping the sample size fixed at 50
e. Lower the significance level to 1% and increase the sample size to 200
f. Increase the significance level to 10% and lower the sample size to 36
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