Question

A company's old antacid formula provided relief for 58% of the people who used it. The company tests a new formula to see if it is better, and gets a P-value of 0.06. State the null and alternative hypotheses. Is it reasonable to conclude that the new formula and the old one are equally effective? Explain. What is the null hypothesis? What is the alternative hypothesis? Choose the correct answer below. O A. Since the P-value is greater than 0.05, it seems that the new formula is more effective than the old one. O B. It is not reasonable to conclude that the new formula and the old one are equally effective. The P-value cannot suggest this conclusion. O c. It is not reasonable to conclude that the new formula and the old one are equally effective. There is a 6% chance the new formula is better than the old one. OD. Since the P-value is greater than 0.05, it seems that the new formula is equally effective as the old one.

Answer 1

Solution:

This a two- tailed test.

The null and alternative hypothesis is,

Ho: p = 0.58

Ha: p $\neq$ 0.58

Since,

The p-value is p = 0.06, and since p = 0.06 > 0.05, it is concluded that the null hypothesis is fail to rejected.

Option D is correct.