Question

A pharmaceutical company is testing a new drug. Of the 110 people that received the drug, 61 of the people's autoimmune disease went into remission. Using the old drug the autoimmune disease for 50% of all the people treated went into remission. When testing whether or not the new drug is more effective then the old drug at treating people's autoimmune disease (In terms of cases going into remission), what conclusion can be made based on hypothesis test? Assume the level of significance for the test is 0.05. Select one: a. At the 0.05 significance level, there is enough evidence to conclude that 50% of people's autoimmune disease will go into remission if they take new drug. b. At the 0.05 significance level, there is not enough evidence to conclude that the new drug is more effective than the old drug. c. At the 0.05 significance level, there is enough evidence to conclude that the old drug is more effective than the new drug. d. At the 0.05 significance level, there is enough evidence to conclude that the new drug is more effective than the old drug.

Answer 1

in no of people received drug = 10 peoplers autoimmune went on so went into remission a X no. of 61 ..pa Х = 61 슦 OSSUS n TID ~ 0.55 1

Ho! 2:50-12.0.50 504. of people into وله treated went remission) н, РУ 50 : 0.50 l claim that Right tailed) new is more.. drug effective statistic, AN under 1 Ho. test 2 12 N(0.3) As 'n' is large. $ paln 0.55 0.50 1050) 20-50) ['&=7172 1.0488 1 1.05 P-value P 2 > 2-cal ER (2 > 1.05 Dis-p10<24 1.05 fusing Normal 0.3531 table} -0.1469 Ko 5-&ggt -0.5 2:0 1:05 Sairal
since, p- value is 0.1469 which is greater than level of significance (=0.05) so, we fail to reject the null hypothesis and concluded that 50% of people treated went into remission.

So, option a is correct.