Nursing-Home Costs.

The cost of staying in a nursing home in the United States is rising dramatically, as reported in the August 5, 2003, issue of The Wall Street Journal. In May 2002, the average cost of a private room in a nursing home was $168 per day. For August 2003, a random sample of 11 nursing homes yielded the following daily costs, in dollars, for a private room in a nursing home.

73 199 192 181 182 250

159 182 208 129 282

(To answer the following questions, you need to find the sample standard deviation s, calculate sample standard error , determine level for each situations and df, find t-crit value on the chart, then calculate the t statistics (, then make decisions for the two situation)

a.Describe and formulate the Hypothesis

b.Apply the t-test to decide at the 5% significance level ( = .05) whether the average cost for a private room in a nursing home in August 2003 exceeded that in May 2002. (whether or not reject the Null Hypothesis)

c.Repeat b process to decide at the 10% significance level ( = .10) whether the average cost for a private room in a nursing home in August 2003 exceeded that in May 2002.(whether or not reject the Null Hypothesis)