The following lists the costs of name brand drugs and the corresponding generic drug before insurance. We are interested in testing to see if there is a significant difference in the costs. ROUND TO FOUR DECIMAL PLACES Drug Name Brand Drug Generic Drug 1 1262 1964 2 4108 1755 3 1864 2302 4 1829 1682 5 2059 1851 6 1020 3050 a. Find . b. Find c. Find the test statistic for this type of data. d. Find the critical value at 98% confidence. e. What conclusion would be made here at 98% confidence?
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
|
Drug |
Name Brand Drug |
Generic Drug |
|
1 |
1262 |
1964 |
|
2 |
4108 |
1755 |
|
3 |
1864 |
2302 |
|
4 |
1829 |
1682 |
|
5 |
2059 |
1851 |
|
6 |
1020 |
3050 |
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