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Many Americans that have HMOs claim the co-pay for an HMO doctors visit is too high, the American medical insurance association claims the average co-pay

Many Americans that have HMOs claim the co-pay for an HMO doctors visit is too high, the American medical insurance association claims the average co-pay for adoctor'svisit is $7.75. A random sample of ten health maintenance organizations (HMOs) was selected. For each HMO, the co-payment (in dollars) for a doctor's office visit was recorded. The results (raw data) are as follows: 11, 10, 5, 12, 9, 12, 10, 6, 5, 9. Under the assumption that co-payment amounts are normally distributed, test the American medical insurance association's claim at a significance level of .05, using thetraditional method of

hypotheses testing.(16 points)

Data

5

5

6

9

9

10

10

11

12

12

Page3of15

a) State the claim in words: (3 points)

b) State Null(H0)and Alternative(Ha)hypotheses using the correct notation. (2 points

c) State the mean and Standard deviation,you must show your work!!!No work No points (4 points) d) State the critical value (s) C.V.: (2 points)

e) State theZtestorTtestvalue (1 point) f) State your decision: (1 point)

g) Write your statement:

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