Q1) Auditor reviewed 25 oral surgery insurance claims from particular surgical office, finding that mean out of pocket patient above reimbursed amount was $275.66 with standard deviation of $78.11.

a) At 5% level of significance, does this sample prove violation of guideline that average patient must pay no more than $250 out of pocket?

b) Mention your hypotheses and decision rule? Is this close decision?

Q2) Web based company OH Baby! Has goal of processing 95% of its orders on same day they are received. IF 485 out of the next 500 orders are processed on same day, would this prove that they are beyond their goal, using α= .025?