Test the hypothesis that charges for patients with MS-DRG 291 are different for

Question

Test the hypothesis that charges for patients with MS-DRG 291 are different for men and women. Assume equal variances.

**Be sure to state the null and alternative hypotheses and set the alpha prior to performing the test.

Sex drgcode TotChg 2 291 35529 2 291 17742 2 293 13801 2 293 22829 2 293 32060 1 292 23832 2 292 36438 2 292 25732 2 292 20221 1 291 14581 1 292 23253 2 291 88808 2 293 28532 2 291 28950 1 292 79101 1 292 18286 2 291 63175 2 292 19651 1 291 23472 1 292 26800 1 293 22316 2 293 10183 2 292 11577 1 291 56042 1 292 34977 1 292 17915 2 292 38346 2 291 24430 2 292 20915 1 292 8797 2 293 22233 1 292 15657 1 291 53870 1 293 24333 2 293 22980 1 292 9711 2 292 44929 1 291 15208 1 292 28646 1 291 20134 1 293 33039 2 292 21687 1 292 22420 1 291 33153 1 292 27710 2 291 23928 1 291 28748 2 291 131686 2 291 12482 1 291 60180 2 293 25922 1 292 18209 2 291 25176 2 292 9225 2 291 64168 2 291 90725 2 293 16811 1 292 31073 1 291 42129 2 292 45304 2 293 12438 2 292 15602 2 292 25997 1 293 15288 1 291 17781 1 291 63204 2 293 21207 1 292 46736 2 291 73609 1 292 23519 2 292 18933 2 292 26339 2 292 28649 1 291 31108 1 291 20907 1 293 35255 1 292 10914 1 291 71142 2 292 38089 2 292 25336 1 293 6085 2 291 70048 1 292 18174 1 292 56850 2 292 16395 2 293 17077 1 291 20648 1 293 24843 2 292 10018 2 292 19637 1 293 15039 1 293 12008 1 293 43885 1 293 15205 1 293 19432 2 292 24539 2 292 35472 1 292 24516 1 292 9846 1 293 18336 1 292 44324 2 292 24535 1 291 102111 1 293 14033 1 291 38354 2 291 14917 2 292 47733 2 291 30440 2 292 40504 2 291 56257 1 292 62293 1 292 24030 2 291 25722 1 292 34629 2 293 25673 1 292 34258 2 292 8438 1 292 39438 2 291 15923 1 292 21589 1 291 13441 2 292 23378 1 291 29035 1 292 21240 1 292 15701 1 291 47682 1 291 39062 1 292 19412 2 292 164904 1 291 19703 1 292 37693 1 293 12872 1 292 12543 1 291 71078 1 291 26698 1 291 54325 2 292 23591 2 291 27103 1 291 33435 2 291 54436 1 291 70672 2 291 30996 1 293 16825 1 291 27776 1 293 26138 2 291 98993 1 291 39160 1 292 29010 1 293 18565 1 291 69929 2 291 39166 2 293 16361 1 291 106356 2 292 29394 2 291 29086 1 291 23683 1 291 156238 2 292 21041 2 291 24637 1 291 44681 2 292 15418 1 292 18295 2 292 28976 2 291 21426 2 291 18041 2 291 66007 1 292 38497 2 293 35842 1 291 71247 1 292 8845 1 291 30819 2 292 24696 1 292 24778 1 293 15092 1 293 31139 1 292 43675 1 291 220386 2 291 16197 2 293 26719 2 291 98549 2 291 69937 1 291 120238 1 292 100218 2 292 13254 2 292 28776 2 292 20993 2 291 39557 2 292 18866 2 291 174182 2 291 39436 2 291 32084 2 291 29976 2 292 20227 2 291 72098 2 291 55763 2 291 23347 1 292 15202 2 291 35325 1 291 45452 1 291 32392 2 292 23542 2 293 32722 2 292 14583 1 291 18794 2 291 15004 1 291 57453 2 291 32569 1 292 98486 1 293 22226 1 291 52443 1 291 130415 1 291 58586 2 292 44401 2 291 10367 1 293 38028 2 291 33332 1 291 36968 1 293 30655 1 292 14413 1 292 21088 2 291 25864 2 293 25687 2 291 42702 2 293 25213 1 292 16032 1 292 63407 2 291 24831 2 291 12803 1 293 15388 1 292 38046 2 291 24249 2 292 29207 1 291 66705 2 291 26725 1 292 22087 2 291 95341 2 292 16425 2 293 16744 1 292 19618 2 292 72700 1 293 43325 1 291 27331 1 291 22748 2 292 46960 2 292 18873 2 292 73823 2 291 48317 2 293 12207 2 291 30343 1 293 46655 1 291 30897 1 293 12216 2 293 51618 1 291 9883 2 292 57580 1 292 30329 1 293 74537 1 292 38058 1 291 29681 2 293 47786 2 292 37183 1 291 15899 2 292 81572 1 292 41475 2 291 18473 1 292 15747 2 291 48949 1 292 38760 1 292 40008 2 292 34595 2 293 15575 2 293 38731 1 293 22748 1 291 37045 1 291 46376 1 293 26963 1 291 40766 1 292 36254 1 291 18186 2 291 39812 1 292 40458 2 292 45172 2 292 25335 2 292 27815 2 291 74297 2 291 19034 1 291 9358 1 291 22314 1 293 7000 1 291 45120 1 292 27053 1 292 20764 1 291 9722 1 291 33890 2 291 45579 2 291 15201 2 293 17863 2 291 15464 1 291 24410 1 292 45895 2 291 19740 2 291 42445 1 293 14349 1 292 39468 1 292 89164 1 293 12733 2 293 26992 1 293 29854 2 292 12973 2 293 19665 2 291 56028 2 293 21695 2 291 127306 1 293 28599 1 293 28627 1 291 39903 2 292 8745 2 291 35352 1 291 15818 1 292 18326 2 292 24820 2 293 23617 2 293 20716 2 292 54434 2 293 18767 2 291 36344 2 293 34838 2 291 48732 1 291 66805 2 291 79513 1 291 128841 1 292 13269 2 292 15547 1 293 15374 1 292 20266 1 293 21397 1 291 207256 1 291 22634 1 292 31629 1 291 24338 2 291 79855 2 291 102395 1 292 21793 1 292 7182 1 291 43929 2 292 12551 2 291 36265 2 292 41930 2 291 25363 2 292 38976 2 293 25440 1 291 453273 1 291 77096 1 293 26764 1 291 21519 2 292 43263 2 291 29923 2 291 21974 2 293 20018 2 293 18212 1 293 13095 1 293 17534 1 291 22251 1 291 32358 1 292 19668 1 293 21831 1 292 32805 2 292 48207 1 292 22320 2 291 88250 2 292 31266 2 291 43526 2 291 10588 2 291 30272 1 293 27367 2 292 39738 2 292 27039 2 291 183990 1 291 14979 1 291 70379 1 291 24766 2 292 44204 2 293 13509 1 291 51845 2 291 20289 1 291 52470 2 292 24732 1 293 9294 2 291 37072 2 292 58785

Explanation / Answer

Null Hypothesis: The charges for patients with MS-DRG 291 are same for men and women.

Vs

Alternative Hypothesis: The charges for patients with MS-DRG 291 are different for men and women.

## Sorting the data for men and women,

and performing the two sample t-test in Minitab

Two-Sample T-Test and CI: Male, Female

Two-sample T for Male vs Female

N Mean StDev SE Mean
Male 82 52704 59566 6578
Female 83 46320 34551 3792

Difference = mu (Male) - mu (Female)
Estimate for difference: 6384.08
95% CI for difference: (-8563.73, 21331.90)
T-Test of difference = 0 (vs not =): T-Value = 0.84 P-Value = 0.400 DF = 163
Both use Pooled StDev = 48618.0088

Here the P-value = 0.400 does not provides the enough evidence to reject the null hypothesis at 5% level of significance. Hence The charges for patients with MS-DRG 291 are different for men and women.

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