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 p-value for this hypothesis test would be between __ __.

A) 0.01 and 0.02
B) 0.02 and 0.05
C) 0.10 and 0.20
D) 0.05 and 0.10