NULL HYPOTHESIS DESTROYER!!!

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THE P VALUE IS 0.012 IN THIS PROBLEM, AND IT IS SMALLER THAN 5%.
WE SHOULD DENY THE NULL HYPOTHESIS THAT ROOT CANAL FEE IN ALLSWORTH IS NOT SIGNIFICANTLY GREATER THAN THE NATIONAL AVERAGE AT A 5%..


HELP!!!!

 

[DAT Destroyer]

THE P VALUE IS 0.012 IN THIS PROBLEM, AND IT IS SMALLER THAN 5%.
WE SHOULD DENY THE NULL HYPOTHESIS THAT ROOT CANAL FEE IN ALLSWORTH IS NOT SIGNIFICANTLY GREATER THAN THE NATIONAL AVERAGE AT A 5%..


HELP!!!!

The null hypothesis is that the average root canal is $750. Since the P value (1.2%) is less than the significance value ( 5%) we reject the claim and conclude that the cost of a root canal in Allsworth is higher than the national average.

Hope this helps..

 

[etan74]

@orgoman22
In this same question (Math Destroyer 2016 Test 12 #5), wouldn't the answer choice B. "The cost of a root canal in Allsworth is consistent with the national average within a significance level of 1%" also be correct? My reasoning is that because the p-value of 1.2% is greater than the 1% significance value, we would not reject the null hypothesis, and therefore the Allsworth root canal cost is consistent with the national average?

Thank you.

 

[Roy Williams]

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