The average health care costs per year for a sample of U.S. cities (50,000~200,000 population) are $586. U.S. Department of Health and Human Services has funded several HMOs. Ten [n= 10] samples show the Sample Mean: $521.30, s = $55.80, s.e.=17.65.
a. Calculate the t score based on these data.
b. The research hypothesis H1 is that HMOs are an improvement. Are they? [6 points] The t-score associated with alpha = 0.005 from Table 3 in the appendix is 2.576. Answer this question after comparing the calculated t score [your answer from part a] with the critical t score of 2.576.