You are an economic consultant for Arizona Medicare. The Chief Financial Officer of Ari-
zona Medicare is thinking of implementing Managed Care delivery systems in rural counties
to reduce costs. They collect data from 30 counties before and after the policy change. This
produces two samples: costs before AND after policy implementation. The mean difference
between the two samples is $235.20 ( ?d = 235.20). The standard deviation of the sample
differences is $36.50 (SD= 36.50). And obviously, n = 30. Assume that the population
data is from two normally distributed populations. Conduct a hypothesis test at the 5% sig-
nificance level to test if the mean difference between both samples is less than $23.60. (This
means that the HA: ?D< 23.60). For this problem, follow the steps just as we did in class.
I want to see each step to give you full points.