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.

(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)