A health insurer has determined that the "reasonable and customary" fee for a certain medical procedure is $1200.They suspect that the average fee charged by one particular clinic for this procedure is higher than $1200.The insurer wants to perform a hypothesis test to determine whether their suspicion is correct.

Question

Quizplus · Accepted Answer

Since the insurer suspects that the fee charged by the clinic is higher than $1200, we need to perform an upper-tailed test. We want to test whether the population mean (average fee charged by the clinic) is greater than $1200. Therefore, the correct choice is C, which represents an upper-tailed test.

A Health Insurer Has Determined That the "Reasonable and Customary