Hypothesis Testing for difference between means. The task force claims that the average cost per visit will be significantly less if the suggestion is adopted. At a 0.05 level of significance, test the claim of the task force.

Because of massive cutbacks in transfer payments to the provinces, provincial governments are in a quandary over how to maintain a high standard in health care. Given the sensitive nature of the issue, the provinces have set up independant commissions to study the issue. A task force in Alberta has suggested that more "community health clinics", run primarily by community health nurses, be set up, as opposed to "medi clinics", run primarily by doctors. The task force claims that the average cost per visit will be significantly less if the suggestion is adopted. To substantiate the claim, the task force provides the following data from a recent study: Medi-Clinics CH Clinics ... click for more

Hypothesis Testing

Public service managers complain that their salaries are falling behind those of their counterparts in the private sector. To make a strong case for his employees, the Deputy Minister of Finance has produced a document for the Minister’s consideration. The document compares the average salary of ten highly placed managers with those of their counterparts in the private sector. The table below summarizes the result, giving financial amounts in thousands of dollars. (see data in attached file) At a 0.05 level of significance, can you justify the Deputy’s claim that the average salary of a public sector manager is lower than that of his or her counterpart in the private sector?

Mean, median, mode, standard deviation, frequency distributions

See Attachment

Mean, median, mode, standard deviation, frequency distribution

See Attachment

Probability of failure of components

Two components of a machine work independently. The probability that component A will fail is 0.1, and the probability that component B will fail is 0.2. A) What is the probability that both components will fail? B) What is the probability that only one of the components will fail? C) What is the probability that at least one component will fail? D) What is the probability that neither component will fail?