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[solution]: A survey recently reported that the mean national annual


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A survey recently reported that the mean national annual expenditure for inpatient and

outpatient services of all persons over 64 years of age was $5,423 with a standard

deviation of $979. A random sample of 352 persons over age 64 living in Sudbury had an

average expense of $5,516.

a) Can we conclude that the mean inpatient and outpatient expense of all Sudbury

residents over age 64 is higher than the national average of $5,423? Use the .01

level of significance.

b) Calculate the P-value for this test. Would your answer have changed if you had used a

.05 level of significance

 


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