A consumer awareness group has received several complaints that the price of asthma medicine has significantly increased in the recent years. Two years ago, the mean price for this medicine was estimated to be $78.00, and the price at different pharmacies was approximately normally distributed. The group decides to select 10 pharmacies at random and record the pice of the medicine at each of the pharmacies. Assuming a 5 percent level of significance, which of the following decision rules should be used to these the hypotheses below?

A consumer awareness group has received several complaints that the price of asthma medicine has significantly increased in the recent years. Two years ago, the mean price for this medicine was estimated to be $78.00, and the price at different pharmacies was approximately normally distributed. The group decides to select 10 pharmacies at random and record the pice of the medicine at each of the pharmacies. Assuming a 5 percent level of significance, which of the following decision rules should be used to these the hypotheses below?

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A consumer awareness group has received several complaints that the price of asthma medicine has significantly increased in the recent years. Two years ago, the mean price for this medicine was estimated to be $78.00, and the price at different pharmacies was approximately normally distributed. The group decides to select 10 pharmacies at random and record the pice of the medicine at each of the pharmacies. Assuming a 5 percent level of significance, which of the following decision rules should be used to these the hypotheses below?

Ho: The mean price of medicine is $78.00
Ha: The mean price of medicine is higher than $78.00



(A) Reject the null hypothesis if p-value > 0.05.
(B) Reject the null hypothesis if p-value > 0.025.
(C) Reject the null hypothesis if X > 78.00.
(D) Reject the null hypothesis if the test statistic > 1.812
(E) Reject the null hypothesis if the test statistic > 1.833



Answer: ...


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