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Total shuffles = 1000 Mean = 0.005 SD = 0.125 200 150 Number of shuffles 100 50 0 0.48 -0.28 -0.08 0.12 0.32 Shuffled difference

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Total shuffles = 1000 Mean = 0.005 SD = 0.125 200 150 Number of shuffles 100 50 0 0.48 -0.28 -0.08 0.12 0.32 Shuffled difference in proportion a. The above graph is a histogram of 1,000 possible values of dif- ference in proportion of claims judged to be overpayments between small and medium-sized claims. At what numeric value does this graph center? Explain why that makes sense. b. The p-value is computed to be 0.184. Shade the region on the above graph that represents the p-value. c. Interpret the p-value reported in part (b) in the context of the study, d. Based on the p-value what would you conclude about strength of evidence? e, Calculate an appropriate standardized statistic and interpret the standardized statistic in the context of the study. f. Do the p-value and standardized statistic both lead you to the same conclusion? g. Use the 2SD method to find a 95% confidence interval for the pa- rameter of interest. Report this interval. h. Interpret the interval reported in part (g) in the context of the study. i. Is your conclusion from using either the p-value or the standard- ized statistic consistent with your finding from the 95% confidence interval? How are you deciding? J. State a complete conclusion about this study, including signifi- cance, estimation (confidence interval), causation, and generaliza- tion. Be sure to explain how you are arriving at your conclusion

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