A consumer advocate in California is concerned with the price of a common generic drug. Specifically, he
Question:
A consumer advocate in California is concerned with the price of a common generic drug. Specifically, he feels that one region of the state has significantly different prices for the drug than two other regions. He divides the state into three regions and collects the generic drug’s price (in $) from 10 pharmacies in each region. The sample information is in the accompanying data file.
a. At the 5% significance level, do differences exist between the mean drug prices in the three regions? Assume that prices are normally distributed.
b. If significant differences exist, use Tukey’s HSD method to determine which regions’ means differ at the 5% significance level.
Region 1 | Region 2 | Region 3 |
38 | 32 | 40 |
32 | 34 | 39 |
36 | 32 | 42 |
36 | 33 | 39 |
34 | 36 | 37 |
36 | 35 | 41 |
39 | 33 | 41 |
35 | 35 | 40 |
36 | 39 | 39 |
37 | 34 | 40 |
Step by Step Answer:
Business Statistics Communicating With Numbers
ISBN: 9781260716306
4th Edition
Authors: Sanjiv Jaggia, Alison Kelly