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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
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.
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