Question: A useful practice problem for Q6-Q10 is: 7.38 6. Between the options below, which is the most appropriate hypothesis test to determine whether there is
A useful practice problem for Q6-Q10 is: 7.38 6. Between the options below, which is the most appropriate hypothesis test to determine whether there is support for the claim that the average of the predicted charges is more than $500 greater than the average actual charges? a. Two-sample paired T-test (upper-tailed) b. Two-sample T-test assuming equal variances (upper-tailed) c. Two-sample T-test assuming unequal variances (upper-tailed) 7. Based on the answer to Q6, use the automated data analysis tools in Excel to compute the test StatistiC. "HINT* THE ORDER OF ACTUAL AND ESTIMATED MATTERS HERE AND WE NEED TO BE CAREFUL, REMEMBER THAT THE AUTOMATED EXCEL TOOL ONLY ALLOWS FOR POSITIVE VALUES OF d. 8. Based on the answer to Q6&Q Q7, use the appropriate formula to compute the p-value for this teSt. "HINT" YOU CAN ALSO GET THIS NUMBER FROM THE OUTPUT OF THE AUTOMATED ANALYSIS USED TO ANSWER Q7. 9. Based on the result from Q8, and assuming alpha =0.05, what is your conclusion? a. Fail to reject the null b. Reject the null 10. What does the result from Q9 mean in English? a. The average of the predicted charges is more than $500 greater than the overage actual charges. b. The average of the predicted charges is not more than $500 greater than the average actual charges
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