Question: The 2015 Milliman Medical Index reported on its website (www.milliman.com) that in 2015 the average annual out-of-pocket medical costs for a typical family were $4,065.

The 2015 Milliman Medical Index reported on its website (www.milliman.com) that in 2015 the average annual out-of-pocket medical costs for a typical family were $4,065. A health care consumer group believes that the actual average is higher than this. Suppose the group has selected a random sample of 120 “typical” households and asked them to go back through their 2015 medical payments and record the total out-of-pocket expenses for the year. The data are in a file called Medical Expenses. Based on these data, what should the consumer group conclude, using an alpha level of 0.01?

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