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Suppose a manufacturer of Ibuprofen, a common headache remedy, recently developed a new formulation of the...

Suppose a manufacturer of Ibuprofen, a common headache remedy, recently developed a new formulation of the drug that is claimed to be more effective. To evaluate the new drug, a sample of 190 current users is asked to try it. After a one-month trial, 172 indicated the new drug was more effective in relieving a headache. At the same time, a sample of 310 current Ibuprofen users is given the current drug but told it is the new formulation. From this group, 261 said it was an improvement. (1) State the decision rule for .01 significance level: H0: πn ≤ πc; H1: πn > πc. (Round your answer to 2 decimal places.) Reject H0 if z > (2) Compute the value of the test statistic. (Do not round the intermediate value. Round your answer to 2 decimal places.) Value of the test statistic (3) Can we conclude that the new drug is more effective? Use the .01 significance level. H0. We conclude that the new drug is more effective.

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