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A Hypothesis Test Is to Be Performed $1200\$ 1200 They Suspect That the Average Fee Charged by One

Question 67

Multiple Choice

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


A) Null hypothesis: mean fee =$1200= \$ 1200
B) Null hypothesis: mean fee >$1200> \$ 1200
Alternative hypothesis: mean fee >$1200> \$ 1200
Alternative hypothesis: mean fee =$1200= \$ 1200
C) Null hypothesis: mean fee =$1200= \$ 1200
Alternative hypothesis: mean fee $1200\geq \$ 1200
D) Null hypothesis: mean fee <$1200< \$ 1200
Alternative hypothesis: mean fee >$1200> \$ 1200

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