The amount of money spent on health care is an important issue for workers becau

Question

The amount of money spent on health care is an important issue for workers because many companies provide health insurance that only partially covers certain medical procedures. The director of employee benefits at a midsize company wants to determine whether the typical worker spends more than $350 per year on health care needs. A random sample of 6 workers is selected and the amount they spent on their families’ health care needs during the past year is given below. Assume that the distribution of health care spending by the workers is normal.

Employee

Amount (in $/year)

1

$400

2

$276

3

$398

4

$354

5

$194

6

$590

Q3-1: State the null and alternative hypotheses both in words and in symbols. [0.5]

For example:
Hypotheses using words:
H0: The cars on the highway respect the speed limit of 100 km/h.
HA: The cars on the highway go faster than the speed limit of 100 km/h.

Hypotheses using symbols: H0: 100 km/h.
HA: > 100 km/h.

Q3-2: Discuss which test is appropriate in terms of:

a) The research method used (i.e., is this an experiment?)

b) The type of hypothesis test (i.e., one-sample, two paired [related] samples, two

independent samples)

c) The directionality of the test (i.e., one-tailed to the left/right, two-tailed)

Provide an explanation for your responses. [0.5]
Q3-3: Conduct the appropriate analysis and show your work. That is, determine the decision

criteria for a hypothesis test using = .05, and calculate the test statistic. [2]

Q3-4: Make a statistical decision and write a short substantive interpretation of the results of the test. Make sure to include the value of the effect size (i.e., Cohen’s d) and comment on that. [1]

Employee

Amount (in $/year)

1

$400

2

$276

3

$398

4

$354

5

$194

6

$590

Explanation / Answer

as per chegg policies i am answering Q1 only

1)

H0: The cars on the highway respect the speed limit of 100 km/h.

HA: The cars on the highway go faster than the speed limit of 100 km/h.

Hypotheses using symbols: H0: 350 km/h.

HA: > 350 km/h

2)

a) yes, this is an experiment research method. as the data isc collected in a form of survey.

b) one sample t test is used here

c) one tailed (right tailed)

3)

mean= 368.6666667 AVERAGE

sd= 134.269381 STDEV

n= 6 COUNT

t= (mean-u)/(sd/sqrt(n))

=(368.6667-350)/(134.2694/SQRT(6))

0.340538426

p-value

P(T>0.340538)

=T.DIST.RT(0.340538,5)

0.373646495

with t=0.34 and p-value >0.05, I fail to reject ho and conclude that

The cars on the highway go faster than the speed limit of 100 km/h. > 350 km/h

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