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One of the reasons health care costs have been rising rapidly in recent years is the increasing cost of malpractice insurance for physicians. Also, fear

One of the reasons health care costs have been rising rapidly in recent years is the increasing cost of malpractice insurance for physicians. Also, fear of being sued causes doctors to run more precautionary tests (possibly unnecessary) just to make sure they are not guilty of missing something. These precautionary tests also add to health care costs. Data in the file namedLawSuitare consistent with findings in aReader's Digestarticle and can be used to estimate the proportion of physicians over the age of 55 who have been sued at least once. Data from file LawSuit: YES (sued): 92 NO (not sued): 58 TOTAL: 150 a. Formulate hypotheses that can be used to see if these data can support a finding that more than half of physicians over the age of 55 have been sued at least once.

b. Use Excel and the file namedLawSuitto compute the sample proportion of physicians over the age of 55 who have been sued at least once. What is thepvalue for your hypothesis test? c. At =0.01, what is your conclusion?

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