Late payment of medical claims can add to the cost of healthcare. For one insura

Question

Late payment of medical claims can add to the cost of healthcare. For one insurance company, 85.1 % of the claims werepaid in full when first submitted. Suppose that the insurancecompany developed a new payment system in an effort to oncreasethis percentage. A sample of 200 claims processed under thissystem revealed that 180 of the claims were paid in full when firstsubmitted. At the .05 level of significance, is there evidence that thepopulation proportion of claims processed under the new system ishigher than the article reported for the previous system? Answer given by text: Ho: P < or equal to .851 Ha: P > .851 Z= 1.96 Zc = 1.65 Since Z = 1.96 > Zc = 1.65, reject Ho and accept Ha. Please explain how this answer was arrived at. As muchexplanation vs/ equation would be appreciated. Late payment of medical claims can add to the cost of healthcare. For one insurance company, 85.1 % of the claims werepaid in full when first submitted. Suppose that the insurancecompany developed a new payment system in an effort to oncreasethis percentage. A sample of 200 claims processed under thissystem revealed that 180 of the claims were paid in full when firstsubmitted. At the .05 level of significance, is there evidence that thepopulation proportion of claims processed under the new system ishigher than the article reported for the previous system? Answer given by text: Ho: P < or equal to .851 Ha: P > .851 Z= 1.96 Zc = 1.65 Since Z = 1.96 > Zc = 1.65, reject Ho and accept Ha. Please explain how this answer was arrived at. As muchexplanation vs/ equation would be appreciated.

Explanation / Answer

Ho: P < or equal to .851 Ha: P > .851 Z= 1.96 Zc = 1.65 Since Z = 1.96 > Zc = 1.65, do notreject Ho.

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