An economist estimated that the cost function of a single-product firm is
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question.docxA business manager in a health-care facility has been investigating the cost of maintaining patients within its plan. A sample of 15 cases (different from those in WQ2) for the last month reported the following:
2.$1,401.20
3.$1,100.00
4.$1,054.00
5.$1,245.00
6.$1,254.00
7.$1,240.00
8.$1,178.00
9.$1,234.00
10.$1,012.00
11.$1,324.00
12.$1,016.80
13.$1,091.20
14.$1,034.00
15.$1,079.00
In its advertising campaigns, the business manager has claimed that the cost of patient care runs about $1,130 per month.
Assuming a level of significance α =0.05 check the validity of the health care facility’s claim.
