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A hospital director is told that 69% of the treated patients are insured. The director wants to test the claim that the percentage of insured patients is above the expected percentage. A sample of 260 patients found that 195 were insured. At the 0.05 level, is there enough evidence to support the director’s claim. State the null and alternative hypothesis.

A) Null: The percentage of insured patients is equal to 69%. Alternative: The percentage is above 69%.
B) Null: The percentage of insured patients is above 69%. Alternative: The percentage is equal to 69%.
C) Null: The percentage of insured patients is below 69%. Alternative: The percentage is above 69%.
D) Null: The percentage of insured patients is equal to 69%. Alternative: The percentage is below 69%.

User Manderson
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Final answer:

The correct hypotheses for the hospital director's concern regarding patient insurance coverage is Null: The percentage of insured patients is equal to 69%. Alternative: The percentage is above 69%. In hypothesis testing for the proportion of disease, the null hypothesis is that the proportion is equal to the general population (9.5%), while the alternative hypothesis is that the proportion is lower than that in the general population.

Step-by-step explanation:

The appropriate hypotheses selection from the provided options for the hospital director's study on insurance coverage would be A: Null: The percentage of insured patients is equal to 69%. Alternative: The percentage is above 69%. This is because the director suspects the percentage of insured patients is more than the expected value, so the null hypothesis should typically reflect no change or the status quo, which in this case is 69%, and the alternative hypothesis should reflect the director's suspicion of it being higher.

When conducting a hypothesis test about whether the true proportion of people in a town suffering from a particular disease is less than the general population (9.5%), the null hypothesis (H0) would be that the proportion is equal to 9.5% (H0: p = 0.095), and the alternative hypothesis (Ha) would be that the proportion is lower than 9.5% (Ha: p < 0.095).

User Mkg
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