Question

According to the Annual survey of drugs expenditure in country X, the annual expenditure for

prescription drugs is $838 per person in the Northeast region of the country. A sample of 60 individuals

in the Midwest shows a per person expenditure for prescription drugs of $745. Further, it is given that

the population standard deviation of $300.

I. 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 and Identify whether it is a two-tail test or a one tail test

(Left or right tail). (3 marks)

II. Decide the suitable test statistics and justify your selection. (1 mark)

III. Calculate the value of the relevant test statistics and identify the P value (3 marks)

IV. Based on the p value in part (III), at 99% confidence level, decide the decision criteria. (1 mark)

V. Make the final conclusion based on the analysis.​

Answer 1

Answer:

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Answer 2

Answer:

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