The Center on Budget and Policy Priorities (Www

question 129

Multiple Choice

The Center on Budget and Policy Priorities (www.cbpp.org) reported that average out-of-pocket medical expenses for prescription drugs for privately insured adults with incomes over 200% of the poverty level was $173 in 2002.Suppose an investigation was conducted in 2012 to determine whether the increased availability of generic drugs,Internet prescription drug purchases,and cost controls have reduced out-of-pocket drug expenses.The investigation randomly sampled 196 privately insured adults with incomes over 200% of the poverty level,and the respondents' 2012 out-of-pocket medical expenses for prescription drugs were recorded.These data are in the file Drug Expenses.Based on the sample data,can it be concluded that 2012 out-of-pocket prescription drug expenses are lower than the 2002 average reported by the Center on Budget and Policy Priorities? Use a level of significance of 0.01 to conduct the hypothesis test.

• A)Because t = -2.69 is less than -2.3456,do not reject H₀
• Conclude that 2012 average out-of-pocket prescription drug expenses are not lower than the 2002 average.
• B)Because t = -2.69 is less than -2.3456,reject H₀
• Conclude that 2012 average out-of-pocket prescription drug expenses are lower than the 2002 average.
• C)Because t = -1.69 is less than -0.8712,reject H₀
• Conclude that 2012 average out-of-pocket prescription drug expenses are lower than the 2002 average.
• D)Because t = -1.69 is less than -0.8712,do not reject H₀

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Definitions:

Epigenesis

The process through which the genotype interacts with the environment to guide development, affecting gene expression without altering the DNA sequence.

Passive Correlation

A statistical relationship between two variables where changes in one variable occur alongside but are not directly caused by changes in the other.

Personality

The combination of characteristics or qualities that form an individual's distinctive character, influencing thoughts, feelings, and behaviors.

Intelligence

The ability to learn, understand, and apply knowledge, to reason and solve problems, and to adapt to new situations.