Friday, October 10, 2014

Border Wars As the costs of prescription drugs escalate, more and more senior citizens are ordering...

Border Wars As the costs of prescription drugs escalate, more and more senior citizens are ordering prescriptions from Canada, or actually crossing the border to buy prescription drugs. The price of a typical prescription for nine best-selling drugs was recorded at randomly selected stores in both the United States and in Canada.18

Drug

U.S.

Canada

Lipitor®

$290

$179

Zocor®

412

211

Prilosec®

117

72

Norvasc®

139

125

Zyprexa®

571

396

Paxil®

276

171

Prevacid®

484

196

Celebrex®

161

67

Zoloft®

235

156

a. Is there sufficient evidence to indicate that the average cost of prescription drugs in the United States is different from the average cost in Canada? Use a = .01.

b. What is the approximate the p-value for this test? Does this confirm your conclusions in part a?

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