Question
Medicare spending per patient in different U.S. metropolitan areas may differ. Based on the sample data below, answer the questions that follow to determine whether
Medicare spending per patient in different U.S. metropolitan areas may differ. Based on the sample data below, answer the questions that follow to determine whether the average spending in the northern region is significantly less than the average spending in the southern region at the 1 percent level.
Medicare Spending per Patient (adjusted for age, sex, and race)Statistic Northern Region Southern Region Sample mean$3,905$7,280Sample standard deviation$1,458$3,560Sample size13 patients16 patients
(a-1)Choose the appropriate hypotheses. AssumeNis the average spending in the northern region andSis the average spending in the southern region.
a.H0:NS 0 versusH1:N-S>0
b.H0:NS 0 versusH1:N-S< 0
(a-2)Specify the decision rule.(Use the quick rule to determine degrees of freedom. Round your answer to 3 decimal places. A negative value should be indicated by a minus sign.)
Reject the null hypothesis iftcalc<.
(b)Find the test statistictcalcassuming unequal variances.(Round your answer to 2 decimal places. A negative value should be indicated by a minus sign.)
tcalc
(c-1)Can we reject the null hypothesis? Yes or No?
(c-2)The average spending in the northern region is significantly less than the average spending in the southern region. True or False?
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