A health policy economist interested in investigating the relationship between the cost of prescription drugs in Canada and the cost of prescription drugs in the United States has information from a...

A health policy economist interested in investigating the relationship between the cost of prescription drugs in Canada and the cost of prescription drugs in the United States has information from a random sample of prescription drugs sold in both countries. For each of these drugs, the economist is examining two pieces of information: the average cost of a one-month supply of the drug in Canada, and the average cost of a one-month supply of the drug in the United States. For the sample of drugs examined, the sample correlation coefficient relating these two pieces of information is . Test for a significant linear relationship between the two variables average prescription drug cost in Canada and average prescription drug cost in the United States by doing a hypothesis test regarding the population correlation coefficient . (Assume that the two variables have a bivariate normal distribution.) Use the level of significance, and perform a two-tailed test. Then fill in the table below.

May 15, 2022
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