Public Health and Nutrition
The Obama administration worked to make health care more affordable and accountable. However, there is considerable variation across the country in provider charges for common medical services. A random sample of hospitals was obtained and the charge for outpatient service 300 was recorded for each.
a. Is there any evidence to suggest that the standard deviation in outpatient charges for this service is greater than 1000? Assume normality and use a = 0.05.
b. Find bounds on the p value associated with this hypothesis test, and carefully sketch a graph to illustrate this value.