Public Policy and Political Science
The U.S. Health Insurance Portability and Accountability Act of 1996 (HIPAA) was designed to protect personal privacy. However, this law has created mountains of paperwork and may even increase the cost of medical care. The federal government has decided to consider repealing this law if more than 60% of all hospitals are experiencing increased costs due to this regulation.
A random sample of hospitals will be obtained, and the resulting information will be used to test the relevant hypothesis. State the null and alternative hypotheses in terms of p, the population proportion of hospitals experiencing increased costs as a result of HIPAA.