Discussion:
Q: An auditor reviewed 25 oral surgery insurance claims from a particular surgical office determining that the mean out-of-pocket patient billing above the reimbursed amount was $275.66 with a standard deviation of $78.11.
a. At the 5 percent level of significance, does this sample prove a violation of the guideline that the average patient should pay no more than $250 out of pocket? State your hypothesis and decision rule.
b. Is this a close decision?