## The admitting office at Sisters of Mercy Hospital wants to be able to inform patients of the average level of expenses

The admitting office at Sisters of Mercy Hospital wants to be able to inform patients of the average level of expenses they can expect per day. Historically, the average has been approximately $1270. The office would like to know if there is evidence of a decrease in the average daily billing. Seventy-four randomly selected patients have an average daily charge of $1208 with a standard deviation of $234. Conduct a hypothesis test to determine whether there is evidence that average daily charges have decreased at a significance level of α=0.05. Assume the population of daily hospital charges is approximately normally distributed.

a.

State the null and alternative hypotheses for the test. Fill in the blank below.

H0Ha: μ=1270: μb ? 1270

b. Compute the value of the test statistic. Round your answer to three decimal places.

c. Draw a conclusion and interpret the decision.