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 225 individuals for prescription allergy relief medicine. The sample mean is found to be 17.6 dollars/year, with a sample standard deviation of 4.4 dollars/year. They have also collected data for non-prescription allergy relief medicine. An independent random sample of 220 individuals yielded a sample mean of 18.4 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 0.05 level of significance? Perform a one-tailed test. 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 0.05 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

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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

225

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

17.6

dollars/year, with a sample standard deviation of

4.4

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

220

individuals yielded a sample mean of

18.4

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

0.05

level of significance? Perform a one-tailed test.


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 0.05 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

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