Question

b. If the significance level is 5%, can the null nypon esis be rejected? Explain.. 42. Based on Food and Drug Administration (FDA) statis- tics, the average time to development of a new drug is 2500 days (source: asco.org). You track a random sam- ple of 50 new drugs and discover that the average time to development for the drugs in the sample is 2428 days. Is this sufficient sample evidence to make the case the average development time is not 2,500 days? Use a significance level of 1%. Assume the pop- ulation standard deviation is 380 days. According to a survey by CCH Inc., an Illinois-base enecializing in human resouro

question #42

Answer 1

sollcetion: page-1 given that? 0:50 28:2428 0:380 Test! - Hol M=2500 vs Hit M 72500 a Test statistic! - *-ul Zal Yn . 2428-2500 380/T 380, ISO Z = -1-34 E - 212= 0.005 Critical value... . 2 0.01 Tag = 22:58 decision 131 > z if Reject HO

page - 2 1-134 > 2.558 -1.34' < 2:58 L". We Fail to Reject to There is not sufficient Sample evidences to make the case the average development time is not 2500 days