Question

A company’s old antacid formula provided relief for 75% of the people who used it. The company tests a new formula to see if it is better. Out of a random sample of 150 people tested with the new formula, 117 get relief.

a. Write the appropriate hypotheses in symbols.

b. What proportion of the people in the study got relief?

c. Compute the test statistic (i.e., the standardized score), along with its appropriate symbol. Show your calculations.

d. Report the p-value.

e. Make a formal conclusion at the 5% significance level (state your conclusion formally in terms of whether you reject the null hypothesis or not and how you are deciding), and then also say what your conclusion means (in terms of whether the study gave sufficient evidence that the new formula is better).

Answer 1

Solution : Ho: p = 0.75 Ha: p > 0.75 b) À Ñ - 117 0.78 150 ) Test statistic = È -p 0.78 -0.75 p(-p) 0.75X0.25 150 0.85 0.1977 d) P-value= Plas 0.85) e wall The study does not since P-value sa 10.05) so failed to reject no give sufficient evidence that the new formula is better.