A health insurer has determined that the "reasonable and customary" fee for a certain medical procedure is $1200. They suspect that the average fee charged by one particular clinic for this procedure is higher than $1200.

Explain in context the conclusion of the test if H0 is rejected.

For the null hypothesis to be rejected , then the conclusion of the test is that the absolute values of the z-statistic and/or the t-test statistic is greater than the critical value

Step-by-step explanation:

Here, we want to explain the conclusion of the test given that the null hypothesis is rejected.

Mathematically, the null hypothesis is as expressed as below;

H0: μ = 1,200

The alternative hypothesis H1 would be;

H1: μ > 1,200

Now, before we can reject or accept the null hypothesis, we will need a sample size and thus calculate the test statistics and the z statistics

For us to reject the null hypothesis, one of two things, or two things must have occurred.

The absolute value of the z statistic |z| or the test statistic |t| must be greater than the critical value.

If this happens, then we can make a rejection of the null hypothesis

A health insurer has determined that the "reasonable and customary" fee for a certain medical procedure is $1200. They suspect that the average fee charged by one particular clinic for this procedure is higher than $1200. Explain in context the conclusion of the test if H0 is rejected.

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A health insurer has determined that the "reasonable and customary" fee for a certain medical procedure is $1200. They suspect that the average fee charged by one particular clinic for this procedure is higher than $1200.

Explain in context the conclusion of the test if H0 is rejected.