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A pharmaceutical company has developed a new drug to help people fall asleep faster. A competing...

A pharmaceutical company has developed a new drug to help people fall asleep faster. A competing drug claims that it helps people fall asleep 30 minutes faster, on average. This company wishes to test the hypothesis that their drug helps people fall asleep even faster than that: Ho: μ = 30 vs. Ha: μ > 30. Define statistical power in the context of this problem. Select one or more:

A) Power would be the probability of not making a Type II Error.

B) Power would be the probability the company decides their drug does not help people fall asleep faster (than the competitor) when in fact it does not.

C) Power would be the probability of not making a Type I Error.

D) Power would be the probability the company decides their drug does help people fall asleep faster (than the competitor) when in fact it does.

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Answer #1

The correct description of power in this scenario would be:

Power would be the probability of not making a Type II Error.

Power would be the probability the company decides their drug does help people fall asleep faster (than the competitor) when in fact it does.

Hence,

Option A and Option D are correct.

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