Question: Last year the city of Goose Pimple Vermont paid an
Last year the city of Goose Pimple, Vermont, paid an average of $3,261 per employee in health care costs (including insurance and additional claims). This year the city management decided that they will contract with Grimms Health Maintenance Organization. At the end of the year they would like to know if they have saved any money. They take a sample of 50 and find a sample mean of $3,015 with a standard deviation of $1,745. Present a hypothesis, a null hypothesis, and evaluate the hypothesis. Explain in plain English what you have found.
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