Question

In a study of 1228 randomly selected medical malpractice lawsuits, it was found that 856 of them were dropped or dismissed (based on data from the Physicians Insurers Association of America). Use a 0.01 significance level to test the claim that there is a difference between the rate of medical malpractice lawsuits that go to trial and the rate of such lawsuits that are dropped or dismissed.

Answer 1

Answer:

we accept the alternate hypothesis that

there is a difference between the rate of medical malpractice lawsuits that go to trial and the rate of such lawsuits that are dropped or dismissed.

Step-by-step explanation:

We first write out our null and alternate hypothesis.

H0: no difference

H1: there is difference

n = 1228

P = 856

X = n-p

= 372

Z = ((x+0.5)-1228/2) divided by √1228/2

= 372.5 - 614/17.52

= -13.784

|Z|= 13.784

The decision is to reject the null hypothesis and accept the alternate because there is evidence that dismissed lawsuit if bigger than 0.5. so there is difference between lawsuits that go to trial and lawsuits that are dismissed