A health policy economist interested in investigating the relationship between the cost of prescription drugs in United States has information from a random sample of 48 prescription drugs sold in both countries. For each of these drugs, the economist is examining two pieces of information: the average cost of a one-month supply of the drug in Canada, and the average cost of a one-month supply of the drug in the United States. For the sample of drugs examined, the sample correlation coefficient r relating these two pieces of information is 0.33. and the cost of prescription Test for a significant linear relationship between the two variables average prescription drug cost in Canada and average prescription drug cost in the United States by doing a hypothesis test regarding the population correlation coefficient p. (Assume that the two variables have a bivariate normal distribution.) Use the 0.05 level of significance, and perform a two-tailed test. Then complete the parts below. (If necessary, consult a list of formulas.) (a) State the null hypothesis H, and the alternative hypothesis H. Ho :0 H, 0 OSO (b) Determine the type of test statistic to use. (Choose one) ▼ (c) Find the value of the test statistic. (Round to three or more decimal places.) (d) Find the two critical values at the 0.05 level of significance. (Round to three or more decimal places.) O and O (e) Based on the data, can the economist conclude (using the 0,05 level) that there is a significant linear relationship between the average prescription drug cost in Canada and the average prescription drug cost in the United States? Yes No 口口 Ix
A health policy economist interested in investigating the relationship between the cost of prescription drugs in United States has information from a random sample of 48 prescription drugs sold in both countries. For each of these drugs, the economist is examining two pieces of information: the average cost of a one-month supply of the drug in Canada, and the average cost of a one-month supply of the drug in the United States. For the sample of drugs examined, the sample correlation coefficient r relating these two pieces of information is 0.33. and the cost of prescription Test for a significant linear relationship between the two variables average prescription drug cost in Canada and average prescription drug cost in the United States by doing a hypothesis test regarding the population correlation coefficient p. (Assume that the two variables have a bivariate normal distribution.) Use the 0.05 level of significance, and perform a two-tailed test. Then complete the parts below. (If necessary, consult a list of formulas.) (a) State the null hypothesis H, and the alternative hypothesis H. Ho :0 H, 0 OSO (b) Determine the type of test statistic to use. (Choose one) ▼ (c) Find the value of the test statistic. (Round to three or more decimal places.) (d) Find the two critical values at the 0.05 level of significance. (Round to three or more decimal places.) O and O (e) Based on the data, can the economist conclude (using the 0,05 level) that there is a significant linear relationship between the average prescription drug cost in Canada and the average prescription drug cost in the United States? Yes No 口口 Ix
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
Related questions
Question
Transcribed Image Text:A health policy economist interested in investigating the relationship between the cost of prescription drugs in Canada and the cost of prescription drugs in the
United States has information from a random sample of 48 prescription drugs sold in both countries. For each of these drugs, the economist is examining two
pieces of information: the average cost of a one-month supply of the drug in Canada, and the average cost of a one-month supply of the drug in the United
States. For the sample of drugs examined, the sample correlation coefficient r relating these two pieces of information is 0.33.
Test for a significant linear relationship between the two variables average prescription drug cost in Canada and average prescription drug cost in the United
States by doing a hypothesis test regarding the population correlation coefficient p. (Assume that the two variables have a bivariate normal distribution.) Use
the 0.05 level of significance, and perform a two-tailed test. Then complete the parts below.
(If necessary, consult a list of formulas.)
Aa
(a) State the null hypothesis Ho and the alternative hypothesis H,.
B
Ho : 0
H : 0
O=0
(b) Determine the type of test statistic to use.
(Choose one) ▼
(c) Find the value of the test statistic. (Round to three or more decimal places.)
(d) Find the two critical values at the 0.05 level of significance. (Round to three or more decimal places.)
and
|
(e) Based on the data, can the economist conclude (using the 0.05 level) that there is a significant
linear relationship between the average prescription drug cost in Canada and the average
prescription drug cost in the United States?
Yes
No
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 4 images
Recommended textbooks for you
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman