Annual expenditure for prescription drugs was $838 per person in the Northeast region of the country (Hospital Care Cost Institute website, November 7, 2012). A sample of 60 individuals in the Midwest region showed a per person annual expenditure for prescription drugs of $745. 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 region than in the Northeast region.
b. What is the value of the test statistic?
c. What is the p-value?
d. At α = .01, what is your conclusion?