Based on the sample data below, is the average Medicare spending in the northern region significantly less than the average spending in the southern region at the 1 percent level?
(a) State the hypotheses and decision rule.
(b) Find the test statistic assuming unequal variances.
(c) State your conclusion. Is this a strong conclusion?
(d) Can you suggest reasons why a difference might exist?

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Medicare Spending per Patient (adjusted for age, sex, and race) Statistic Northern Region Southern Region Sample mean Sample standard deviation Sample size $3,123 $1,546 14 patients $8,456 $3,678 16 patients