The Discovery Medical Aid Board wanted to find out if the mean time to settle medical claims of members differs between two major medical schemes – the Green-Aid Fund and the Explorer Blue Fund. Fifty Green-Aid Fund medical claims received were randomly selected and monitored, and the sample mean time to settlement was 20.8 days. Assume a population standard deviation of 8.2 days for settlement times of Green-Aid Fund claims. For a random sample of 45 Explorer Fund medical claims received, the average time to settlement was 18.4 days. Assume a population standard deviation of 6.3 days for settlement times of Explorer Blue Fund claims. Assume settlement times are normally distributed. Can the Discovery Medical Aid Board conclude that the Green-Aid Fund settles claims slower, on average, than the Explorer Blue Fund? Formulate the null and alternative hypothesis and test this hypothesis at the 7% significance level. What conclusion can be drawn?

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
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Chapter4: Equations Of Linear Functions
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The Discovery Medical Aid Board wanted to find out if the mean time to settle medical claims of members differs between two major medical schemes – the Green-Aid Fund and the Explorer Blue Fund. Fifty Green-Aid Fund medical claims received were randomly selected and monitored, and the sample mean time to settlement was 20.8 days. Assume a population standard deviation of 8.2 days for settlement times of Green-Aid Fund claims. For a random sample of 45 Explorer Fund medical claims received, the average time to settlement was 18.4 days. Assume a population standard deviation of 6.3 days for settlement times of Explorer Blue Fund claims. Assume settlement times are normally distributed. Can the Discovery Medical Aid Board conclude that the Green-Aid Fund settles claims slower, on average, than the Explorer Blue Fund? Formulate the null and alternative hypothesis and test this hypothesis at the 7% significance level. What conclusion can be drawn?
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