According to the Center on Budget and Policy Priorities article " curbing Flexible Spending Accounts Could Help Pay for Health Care Reform" (revised June 10, 2009), flexible spending accounts encourage the over-consumption of health care; people buy things they do not need, otherwise they lose money. In 2007, for those that did not use all of their account (about one out of every seven), the average amount lost was $723.
Suppose a random sample of 150 employees who did not use all of their funds in 2009 is taken and an average amount of $683 was lost. Test the hypothesis that there is no significant difference in the average amount forfeited. Assume that o'= $307 per year. Use a = 0.05.
a. Define the parameter.
b. State the null and the alternative hypotheses.
c. Specify the hypothesis test criteria.
d. Present the sample evidence.
e. Find the probability distribution distribution informatiom.
f. Determine the results.