Question

10. Eliquis The drug Eliquis (apixaban) is used to help prevent blood clots in certain patients. In clinical trials, among 5924 patients treated with Eliquis, 153 developed the adverse reaction of nausea (based on data from Bristol-Myers Squibb Co.). Use a 0.05 significance level to test the claim that 3% of Eliquis users develop nausea. Does nausea appear to be a problematic adverse reaction?

Answer 1

Below are the null and alternative Hypothesis,
Null Hypothesis, H0: p = 0.03
Alternative Hypothesis, Ha: p ≠ 0.03

Rejection Region
This is two tailed test, for α = 0.05
Critical value of z are -1.96 and 1.96.
Hence reject H0 if z < -1.96 or z > 1.96

Test statistic,
z = (pcap - p)/sqrt(p*(1-p)/n)
z = (0.0258 - 0.03)/sqrt(0.03*(1-0.03)/5924)
z = -1.9

P-value Approach
P-value = 0.0574
As P-value >= 0.05, fail to reject null hypothesis.