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A recent study showed an annual per person expenditure on prescription drugs in the Northeast U.S....

A recent study showed an annual per person expenditure on prescription drugs in the Northeast U.S. is $838. A follow-up study showed annual expenditures in the Midwest to be $745 per person annually there. Use a population standard deviation of $300 to answer the following questions:

a. Formulate hypotheses for a test to determine whether the sample data support the conclusion that the population annual expenditure for prescription drugs per person is lower in the Midwest than in the Northeast.

b. What is the value of the test statistic?

c. What is the p-value?

d. At a=0.01, what is your conclusion?

Math   Statistics-And-Probability   
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