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Medicare Would Like to Test the Hypothesis That the Average xˉ\bar { x }

Question 33

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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 ? = 0.05. The correct hypothesis statement for this hypothesis test would be


A) H0: µ c $3,300; H1: µ < $3,300.
B) H0: µ = $3,300; H1: µ × $3,300.
C) H0: xˉ\bar { x } = $3,300; H1: xˉ\bar { x } × $3,300.
D) H0: µ × $3,300; H1: µ = $3,300.

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