Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In 2020, the U.S. Department of Medicine reported that U.S. adults spend, on average, $2,988 per year on prescriptions. They report that the standard

image text in transcribedimage text in transcribed

In 2020, the U.S. Department of Medicine reported that U.S. adults spend, on average, $2,988 per year on prescriptions. They report that the standard deviation is $121 per year. An investigator hypothesizes that the mean amount spent on prescriptions has increased since early 2020 because of the complications from COVID. He conducts a survey of 586 randomly selected U.S. adults. His survey shows that the mean amount spent per year is $2,995. Conduct a test at a 10% level of significance to determine if there is evidence to support the investigator's hypothesis. Ho: = 2988 HA: > 2988 What is the value of your test statistic? (this is your z-score) Round your answer to four decimal places. Part 2 of 3 Use Excel to find your p-value? left-tailed test: =NORM.S.DIST( [Zscore], 1) right-tailed test: =1- NORM.S.DIST( [Zscore], 1) two-tailed test: =2*(1- NORM.S.DIST( abs([Zscore]), 1 )) Round your answer to four decimal places. - G % What is your test decision and conclusion? Since the p-value is greater than the level of significance, we decide to reject the null hypothesis. There is significant evidence that the mean amount spent on prescriptions per year is greater than $2988. Since the p-value is less than the level of significance, we decide to reject the null hypothesis. There is significant evidence that the mean amount spent on prescriptions per year is greater than $2988. Since the p-value is greater than the level of significance, we decide to fail reject the null hypothesis. There is not significant evidence that the mean amount spent on prescriptions per year is greater than $2988. O Since the p-value is less than the level of significance, we decide to fail to reject the null hypothesis. There is not significant evidence that the mean amount spent on prescriptions per year is greater than $2988.

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

Applied Linear Algebra

Authors: Peter J. Olver, Cheri Shakiban

1st edition

131473824, 978-0131473829

More Books

Students also viewed these Mathematics questions