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16. A health insurer has determined that the "reasonable and customary" fee for a certain medical procedure is $1200 suspect that the average fee charged by one particular clinic for this procedure has increased. The insurer performs a significance test to determine whether their suspicion is correct using a = 0.05. The hypotheses are: HO: Ha = $0 Ha: Ha > $0 If the P-value is 0.09 and a decision error is made, what type of error is it? Explain. A. Type II error. We conclude that the average fee charged for the procedure is higher when it actually is not higher. B. Type I error. We conclude that the average fee charged for the procedure is not higher when it actually is higher. C. Type II error. We conclude that the average fee charged for the procedure is not higher when it actually is higher. D. Type I error. We conclude that the average fee charged for the procedure is higher when it actually is not higher. 17. A survey was conducted to determine the difference in gasoline mileage for two truck models. A random sample was taken for each model of truck, and the mean gasoline mileage, in miles per gallon, was calculated. A 98% confidence interval for the difference in the mean mileage for model A trucks minus the mean mileage for model B trucks, HA - HB, was determined to be (2.5, 4.7). Which of the following statements is true? A. The probability that a randomly selected Model A truck will have a gas mileage that is lower than a randomly selected model B truck is 0.98. B. 98% of model A trucks have a gas mileage that is between 2.5 and 4.7 miles per gallon higher than model B trucks. C. The probability that a randomly selected Model A truck will have a gas mileage that is higher than a randomly selected model B truck is 0.98. D. Based on this sample, we are 98% confident that the average mileage for model B trucks is between 2.5 and 4.7 miles per gallon higher than the average mileage for model A trucks. E. Based on this sample, we are 98% confident that the average mileage for model A trucks is between 2.5 and 4.7 miles per gallon higher than the average mileage for model B trucks. 18. The table below summarizes results of a study by Young and Winn (2003) in which the authors counted sightings of the Spotted moray eel and the Purplemouth moray eel in a 150 meter by 250 meter area of reef in Belize [105]. For each eel they recorded the Type of Eel and classified the Location of the Sighting. There were three Locations: grass bed, sand and rubble, and within one meter of the border between grass and sand/rubble. Use level of significance a = 0.02 to determine if Shortness of Breath and Co-Morbidity are associated. Location of Sighting Grass Sand Border Total Type of Eel Spotted 127 97 264 488 Purplemouth 116 67 161 344 Total 243 164 425 832 Ho: There is no association between type of eel and location of sighting. Ha: There is an association between type of eel and location of sighting. Test statistic: x2 = 6.2 df = 2, p-value = 0.050 A. Since the p_value the p_value, we accept HO and conclude that type of eel and location of sighting are not related. C. Since the p_value is > a, we fail to reject HO. We do not have statistically significant evidence that there is an association between type of eel and location of sighting. D. Since the p_value > a, we reject HO and conclude that type of eel and location of sighting E. Since the p_value is > a, we reject HO and conclude that type of eel and location of sighting
