Test a hypothesis at level of significance


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Q: A medical board approved the average stay in the hospital for patients that have a particular operation as 6.0 days. However, the insurance company the claims that the average hospital stay for patients has been substantially longer than 6.0 days. To examine this claim a sample of 100 patients who had this operation in the last year is selected. Perform a test of hypothesis to determine what decision should be made if the sample mean for the 100 patients is 6.32 days and the standard deviation is 0.64 days. Test your hypothesis at α = 0.05 level of significance.

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Basic Statistics: Test a hypothesis at level of significance
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