Two-sided confidence intervals and tests From a sample of

Boston Fitzgerald

Boston Fitzgerald

Answered question

2022-04-11

Two-sided confidence intervals and tests
From a sample of 1751 army hospitals, estimate the mean expenses for a full time equivalent employee for all US army hospitals using a 90% confidence interval given x=6563 and s=2484.

Answer & Explanation

awalkbyfaithbzu6

awalkbyfaithbzu6

Beginner2022-04-12Added 21 answers

Step 1
Since population variance is not known, go for two tailed t-test:
H0:μ0=7000
H1:μ17000
tstatistic=6563700024841751
tstatistic=7.361
Rejec H0 if tstatistic<tcritical
At α=0.1, tcritical=1.645
Since 7.3611.645. Reject H0 and conclude that the mean expenses of a hospital employee is not equal to that of the public.

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