Question: Having a baby in a U.S. hospital costs $2528, on average. Active management of labor (AML) is a group of interventions designed to help reduce the length of labor and the rate of cesarean deliveries. Physicians from the Department of Obstetrics and Gynecology at a particular university health services center were interested in determining whether AML would also translate into a reduced cost for delivery. They conducted a study. In it, they generated a sample of 100 AML deliveries and found that the mean cost was $2476 with a standard deviation of $766. At the 5% level of significance, do the data provide sufficient evidence to conclude that, on average, AML reduces the cost of having a baby in a U.S. hospital?

1. Formulate the appropriate null and alternative hypotheses.

(b) Provide the critical value(s) and clearly present the rejection and nonrejection regions.
.

1. Compute the value of the appropriate test statistic.
2. Combine your results in (b) and (c) to make a decision. I’d like you to provide

a graphic representation of your results. Also, state specifically what your decision is. Provide the mathematical reason for making this decision.

1. At the 5% level of significance, what is your conclusion about AML on baby-delivery costs?
2. Calculate the p-value(s). You may find that your answer is an approximation. Make the appropriate comparison. Then, make a decision.
3. A colleague is concerned that the statistical analysis could be invalid because

individual costs may not be normally distributed. How do you respond?

Price: $2.99

Solution: The downloadable solution consists of 3 pages
Deliverable: Word Document