A study conducted by the research department of a pharmaceutical company claims that the annual spending (per person) for prescription drugs for allergy relief, μ1 , is greater than or equal to the annual spending (per person) for non-prescription allergy relief medicine, μ2 . A health insurance company conducted an independent study and collected data from a random sample of 285 individuals for prescription allergy relief medicine. The sample mean is found to be 17.5 dollars/year, with a sample standard deviation of 4.8 dollars/year. They have also collected data for non-prescription allergy relief medicine. An independent random sample of 275 individuals yielded a sample mean of 18.5 dollars/year, and a sample standard deviation of 3.8 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 0.01 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. (If necessary, consult a list of formulas.) The null hypothesis: H0: The alternative hypothesis: H1: The type of test statistic: (Choose one)ZtChi squareF The value of the test statistic: (Round to at least three decimal places.) The critical value at the 0.01 level of significance: (Round to at least three decimal 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? Yes No

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

See similar textbooks

Related questions

Concept explainers

Question

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

μ1

, is greater than or equal to the annual spending (per person) for non-prescription allergy relief medicine,

μ2

. A health insurance company conducted an independent study and collected data from a random sample of

285

individuals for prescription allergy relief medicine. The sample mean is found to be

17.5

dollars/year, with a sample standard deviation of

4.8

dollars/year. They have also collected data for non-prescription allergy relief medicine. An independent random sample of

275

individuals yielded a sample mean of

18.5

dollars/year, and a sample standard deviation of

3.8

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

0.01

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. (If necessary, consult a list of formulas.)

The null hypothesis:	H0:
The alternative hypothesis:	H1:
The type of test statistic:	(Choose one)ZtChi squareF

The value of the test statistic: (Round to at least three decimal places.)
The critical value at the 0.01 level of significance: (Round to at least three decimal 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?	Yes	No

Definition Definition Measure of central tendency that is the average of a given data set. The mean value is evaluated as the quotient of the sum of all observations by the sample size. The mean, in contrast to a median, is affected by extreme values. Very large or very small values can distract the mean from the center of the data. Arithmetic mean: The most common type of mean is the arithmetic mean. It is evaluated using the formula: μ = 1 N ∑ i = 1 N x i Other types of means are the geometric mean, logarithmic mean, and harmonic mean. Geometric mean: The nth root of the product of n observations from a data set is defined as the geometric mean of the set: G = x 1 x 2 ... x n n Logarithmic mean: The difference of the natural logarithms of the two numbers, divided by the difference between the numbers is the logarithmic mean of the two numbers. The logarithmic mean is used particularly in heat transfer and mass transfer. ln x 2 − ln x 1 x 2 − x 1 Harmonic mean: The inverse of the arithmetic mean of the inverses of all the numbers in a data set is the harmonic mean of the data. 1 1 x 1 + 1 x 2 + ...

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

$Point Estimation, Limit Theorems, Approximations, and Bounds$

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.