Health Care Premiums. Use the following information for Exercises 69–71. The National Conference of State Legislatures reports that the mean annual premium for employer-sponsored family health insurance coverage was $16,351 in 2014. A random sample of 100 such families showed a mean annual premium of $17,251. Assume .
71. Test whether the population mean annual premium is greater than $16,351 using level of significance . Compare your conclusion with the conclusion in Exercise 70. Suggest two possible methods to resolve this contradiction.
9.3.71
. We will reject if the . . . The is not . Therefore we do not reject . There is insufficient evidence at level of significance that the population mean annual premium for employer-sponsored family health insurance coverage has increased from $16,351. Turn to a direct assessment of the strength of evidence against the null hypothesis or obtain more data.