The president of a large company is in the process of deciding whether to adopt
ID: 3159807 • Letter: T
Question
The president of a large company is in the process of deciding whether to adopt a lunchtime exercise program. The purpose of such programs is to improve the health of workers and, in so doing, reduce medical expenses. To get more information s/he instituted an exercise program for the employees in one office. The president knows that during winter months medical expenses are relatively high because of the incidence of cold and flu. Consequently, she decides to use a matched pairs design by recording medical expenses for the 12 months before the program and for 12 months after the program. The “before” and “after” expenses (in thousands of dollars) are compared on a month-to-month basis and shown below:
Before
After
January
68
59
February
44
42
March
30
20
April
58
62
May
35
25
June
33
30
July
52
56
August
69
62
September
23
25
October
69
75
November
48
40
December
30
26
Do the data indicate that exercise programs reduce medical expenses? (a = 0.05) What is the value of the test statistic?
Before
After
January
68
59
February
44
42
March
30
20
April
58
62
May
35
25
June
33
30
July
52
56
August
69
62
September
23
25
October
69
75
November
48
40
December
30
26
Explanation / Answer
before after difference 68 59 9 44 42 2 Ho : miuD = 0 30 20 10 Ha : miuD is not equal to 0 58 62 -4 35 25 10 t = 3.08 / ( 5.88 / srqt 12 ) 33 30 3 t = 1.815 52 56 -4 69 62 7 for alpha = 0.05 df =11 23 25 -2 critical value is : 2.201 69 75 -6 since tRelated Questions
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