Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A study conducted by the research department of a pharmaceutical company claims that the annual spending (per person) for prescription drugs for allergy relief, 1

A study conducted by the research department of a pharmaceutical company claims that the annual spending (per person) for prescription drugs for allergy relief, 1, is greater than or equal to the annual spending (per person) for non-prescription allergy relief medicine, 2 . A health insurance company conducted an independent study and collected data from a random sample of 240 individuals for prescription allergy relief medicine. The sample mean is found to be 17.7 dollars/year, with a sample standard deviation of 5.4 dollars/year. They have also collected data for non-prescription allergy relief medicine. An independent random sample of 280 individuals yielded a sample mean of 18.3 dollars/year, and a sample standard deviation of 4.6 dollars/year. Since the sample size is quite large, it is assumed that the population standard deviation of the sales (per person) for prescription and non-prescription allergy relief medicine can be estimated by using the sample standard deviation values given above. Is there sufficient evidence to reject the claim made by the research department of the company, at the 0.05 level of significance? Perform a one-tailed test. Then fill in the table below.

Carry your intermediate computations to at least three decimal places and round your answers as specified in the table.

The null hypothesis h0:

The alternative hypothesis h1:

The type of test statistic:

The value of the test statistic(round to atleast 3 places):

The critical value at the 0.05 level of significance ( round to at least three places):

Can we reject the claim that the mean spending on prescription allergy relief medication is greater than or equal to the mean spending on non-prescription allergy relief medication?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Linear Algebra and Its Applications

Authors: Gilbert Strang

4th edition

30105678, 30105676, 978-0030105678

More Books

Students also viewed these Mathematics questions

Question

If ( A^2 - A + I = 0 ), then inverse of matrix ( A ) is?

Answered: 1 week ago

Question

What is computer neworking ?

Answered: 1 week ago