Medicare would like to test the hypothesis that the average monthly rate for one-bedroom assisted-living facility is equal to $3,300. A random sample of 12 assisted-living facilities had an average rate of $3,690 per month. The standard deviation for this sample was $530. Medicare would like to set α = 0.05. The critical value for this hypothesis test would be _______.
A)1.645
B)2.201
C)2.761
D)1.985

Question

Quizplus · Accepted Answer

Given that Medicare is likely conducting a two-tailed test with α = 0.05 and the sample size is 12, which means degrees of freedom (n-1) = 11, the critical value from the t-distribution table for a two-tailed test with these parameters is approximately 2.201.

Medicare Would Like to Test the Hypothesis That the Average