Population Standard Deviation  150.0000 
Sample Size  18 
Sample Mean  554.6111 
Confidence Interval  
Confidence Coefficient  0.95 
Lower Limit  
Upper Limit  
Hypothesis Test  
Hypothesized Value  660 
Test Statistic  
Pvalue (Lower Tail)  0.0014 
Pvalue (Upper Tail)  
Pvalue (Two Tail) 
Sample Size  18 
Sample Mean  554.6111 
Sample Standard Deviation  162.8316 
Confidence Interval  
Confidence Coefficient  0.95 
Lower Limit  
Upper Limit  
Hypothesis Test  
Hypothesized Value  660 
Test Statistic  
Pvalue (Lower Tail)  0.0069 
Pvalue (Upper Tail)  
Pvalue (Two Tail) 
The Hospital Care Cost Institute randomly selected 18 individuals, recorded the amount spent each year on prescription drugs, then put this information into Excel. Assume a population standard deviation of $150. Can you reject the hypothesis that the average amount spent per person each year on prescription drugs is at least $660 at α=.005? Based on this paragraph of text, use the correct excel output above to answer the following question.
For the hypothesis stated above, what is the conclusion?
a. 
There is significant evidence to conclude that the average amount spent per person each year on prescription drugs is less than $660. 

b. 
None of the answers is correct 

c. 
There is not significant evidence to conclude that the average amount spent per person each year on prescription drugs is more than $660. 

d. 
There is significant evidence to conclude that the average amount spent per person each year on prescription drugs is more than $660. 

e. 
There is not significant evidence to conclude that the average amount spent per person each year on prescription drugs is less than $660. 
Below are the null and alternative Hypothesis,
Null Hypothesis, H0: μ = 660
Alternative Hypothesis, Ha: μ < 660
Rejection Region
This is left tailed test, for α = 0.005
Critical value of z is 2.576.
Hence reject H0 if z < 2.576
Test statistic,
z = (xbar  mu)/(sigma/sqrt(n))
z = (554.6111  660)/(150/sqrt(18))
z = 2.98
Pvalue Approach
Pvalue = 0.0014
As Pvalue < 0.005, reject the null hypothesis.
There is significant evidence to conclude that the average
amount spent per person each year on prescription drugs is less
than $660.
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