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 hypothesis and decision rule.

(b) Find the test statistic assuming unequal variances.

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

Medical Spending per Patient (adjusted for age, sex, and race) Statistic Northern Region Southern Region Sample mean $ 3,123 $ 8,456 Sample Standard Deviation $ 1,546 $ 3,678 Sample Size 14 patients 16 patients