According to the Hospital Care Cost Institute the annual expenditure for prescription drugs is $838 per person in the Northeast region of the country. A sample of 60 individuals in the Midwest shows 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 than in the Northeast.
b. W hat is the value of the test statistic?
c. W hat is the p-value?
d. At α = .01, what is your conclusion?