Medicare Would Like to Test the Hypothesis That the Average

Multiple Choice

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