# Question

Based on the sample data below, is the average Medicare spending in the northern region significantly less than the average spending in the southern region at the 1 percent level?

(a) State the hypotheses and decision rule.

(b) Find the test statistic assuming unequal variances.

(c) State your conclusion. Is this a strong conclusion?

(d) Can you suggest reasons why a difference might exist?

(a) State the hypotheses and decision rule.

(b) Find the test statistic assuming unequal variances.

(c) State your conclusion. Is this a strong conclusion?

(d) Can you suggest reasons why a difference might exist?

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