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A national study report released by the Center for Studying Health System Change

ID: 3323657 • Letter: A

Question

A national study report released by the Center for Studying Health System Changes (HSC) in 2010, indicated that 20.9% of Americans were identified as having medical bill financial issues. Many people in families with problems paying medical bills in 2010 experienced severe financial consequences from their medical debt, with about two-thirds reporting problems paying for other necessities and a quarter considering bankruptcy, the study found. What if a news organization randomly sampled 400 Americans from 10 cities and found that 90 reported having such difficulty. A test was done to investigate whether the problem is more severe among these cities.

1. What is the p-value for this test is

A. 0.2156

B. 0.0539

C. 0.1078

D. 0.4312

E. None of the above.

2. All else being equal, decreasing the level of confidence desired will:

A. widen the confidence interval.

B. increase the margin of error.

C. increase certainty.

D. decrease the margin of error.

E. Both A and B.

Explanation / Answer

The statistical software output for this problem is:

One sample proportion summary hypothesis test:
p : Proportion of successes
H0 : p = 0.209
HA : p > 0.209

Hypothesis test results:

Hence,

p - Value = 0.2156

Option A is correct.

2. Option D is correct.

Proportion Count Total Sample Prop. Std. Err. Z-Stat P-value p 90 400 0.225 0.02032972 0.78702512 0.2156
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