dolution

Based on population figures and other general information on the German population, suppose it has been estimated that, on average, a family of four in Germany spends about €1,135 annually on dental expenditures. Suppose further that a regional dental association wants to test to determine if this figure is accurate for their area of the country. To test this, 22 families of four are randomly selected from the population in that area of the country and a log is kept of the family’s dental expenditures for one year. The resulting data are given below. Assuming that dental expenditures are normally distributed in the population, use the data and an alpha of 0.05 to test the dental association’s hypothesis.