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An auditor for a government agency was assigned the task of evaluating reimbursement for office visits...

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Statistics

An auditor for a government agency was assigned the task ofevaluating reimbursement for office visits to physicians paid byMedicare. The audit was conducted on a sample of 75 reimbursements,with the following results:

  • In 12 of the office visits, there was an incorrect amount ofreimbursement.
  • The amount of reimbursement was xbar = $93.70, s = $34.55.
  1. At the 0.05 level of significance, is there evidence that thepopulation mean reimbursement was less than $100?
  2. At the 0.05 level of significance, is there evidence that theproportion of incorrect reimbursements in the population wasgreater than 0.10?
  3. Discuss the underlying assumptions of the test used in(a).
  4. What is your answer to (a) if the sample mean equals $90?
  5. What is your answer to (b) if 15 office visits had incorrectreimbursements?

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