Chapter 9 practice alternative and null hypothesis - Chapter 9 1 Annual expenditure for prescription drugs was \$838 per person in the Northeast of the

# Chapter 9 practice alternative and null hypothesis -...

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Chapter 9 1. Annual expenditure for prescription drugs was \$838 per person in the Northeast of the country (Hospital Care Cost Institute website, November 7, 2012). A sample of 60 individuals in the Midwest showed a per person annual expenditure for prescription drugs of \$750. Use a population standard deviation of \$300 to test whether the population annual expenditure for prescription drugs per person is lower in the Midwest than in the Northeast. a. What are the appropriate null and alternative hypotheses? lower will be left side test Ho: μ > 838 Ha: μ < 838 Null hypothesis is μ is greater than or equal to 838 and alternative hypothesis is less than 838. b. What is the test statistic? using ti-84 steps: 1. Stat 2. Calc 3.T-test, data a.μ o=838b.x-bar=750c.sx=300d.n=60e.μ>f.calc t = -2.27 c. What is the pvalue?
Same place where you found T value p-value=0.0134 d. What is your conclusion if α=.01? Does it change for α=.05? at a=.01, do not reject. There is not sufficient evidence that the Midwest is less than northeast. .0134 > .01 . do not reject null hypothesis

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