A recent study showed an annual per person expenditure on prescription drugs in the Northeast U.S. is $838.A follow-up study showed annual expenditures in the Midwest to be $745 per person annually there.Use a population standard deviation of $300 to answer the following questions:

a. 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. (5 pts. Put this answer in Blank 1).

b. What is the value of the test statistic? (5 pts. Put this answer in Blank 2).

c. What is the p-value? (5 pts. Put this answer in Blank 3).

d. At a=0.01, what is your conclusion? (5 pts. Put this answer in Blank 4).