The average per capita annual health care cost for a sample of U.S. cities (50,000-200,000 population) is $5,886, with a standard deviation of $1,116 (n = 378). Cavileer, Oregon (population 175,000), contends that its new outpatient treatment program reduces annual health care costs to $5,525 per person.

The average health care costs per year are $5,886. The Department of Health and Human Services has funded several health maintenance organizations (HMOs). A sample of their average annual costs per person is as follows: $5,591 $5,546 $4,437 $5,527 $6,602 $4,451 $4,494 $5,561 $5,523 $4,481

1. State Ho and Ha formally and in "English" (e.g. Ho: u = 20 Ha: u <> 20; Ho: The average (variable name) is 20 Ha: The average "variable name" is NOT 20)
2. Show the math
3. Reject or retain the Ho at a = .05; provide the "critical t" value at that level
4. Make all tests and hypotheses two-tail REGARDLESS of a question about direction
5. Explain the findings