Question 9. Prescription Drug Costs. Annual expenditure for prescription drugs was $838 per person in the Northeast of the country. A sample of 60 individuals in the Midwest showed a per person annual expenditure for prescription arugs on 9745. Use a population standard deviation of $300 to answer the following questions. a. Formulate hypotheses for a test to determine whether the sample data support the conclusion that the population annual expenditure for prescription drugs per person is lower in the Midwest than in the Northeast. b. What is the value of the test statistic? c. What is the p-value? d. At a = .01, what is your conclusion?

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