An auditor for a government agency was assigned the task of evaluating reimburse

Question

An auditor for a government agency was assigned the task of evaluating reimbursement for office visits to physicians paid by Medicare. The audit was conducted on a sample of 75 of the reimbursements, with the following results: In 12 of the office visits, there was an incorrect amount of reimbursement.

At the 0.02 level of significance, is there evidence that the proportion of incorrect reimbursements in the population was greater than 0.10?

Step 1: The null and alternative hypotheses are

Step 2: The value of the test statistics is

Step 3: The p-value is

Step 4: You should

Step 5 : you should conclude that?

for step 1-5 answers are to be slected from below

-2.0537

0.0416

0.16

1.7321

2.0537

there is insufficient evidence that the proportion of incorrect reimbursements in the population was greater than 0.10.

there is insufficient evidence that the proportion of incorrect reimbursements in the population was smaller than 0.10.

there is sufficient evidence that the proportion of incorrect reimbursements in the population was greater than 0.10.

there is sufficient evidence that the proportion of incorrect reimbursements in the population was smaller than 0.10.

Explanation / Answer

pi = 12/75

1. Ho: pi<=0.1

Ha: pi>0.1

2. test -statistic = (pi-0.1)/sqrt(pi*(1-pi)/n) = (12/75-0.1)/sqrt(12*63/75^3) = 1.417

3. p-value = 0.16

4. do not reject Ho

5.there is insufficient evidence that the proportion of incorrect reimbursements in the population was greater than 0.10

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