QUESTION 12 A medical center is performing an audit of its a

QUESTION 12

A medical center is performing an audit of its accounts accounts receivable. Of particular interest is the number of days that unpaid hospital bills remain outstanding. One tool for analyzing this variable is an “aging schedule,” which classifies accounts by the time elapsed since the first billing notice.

Over the last 5 years, the medical center has worked with the following aging schedule:

For a random sample of 300 accounts, the auditors find the following distribution this year:

Perform the chi-squared goodness-of-fit test on the data at the 0.05 level of significance to determine if the aging schedule has changed. Treat the percentages in the current aging schedule as probabilities by dividing by 100. Specifically, do the following:

i). State the hypotheses
ii). Calculate the test statistic (show calculations or R output)
iii). Report the p-value or the rejection region
iv). State the conclusion in the context of the problem.

Solution