Question

According to the Vision Council of America, 11% of American adults wear contact lenses. An ophthalmologist wants to challenge this reported value with a hypothesis test, so he randomly selected 50 people from the phonebook and asked them if they wear contacts. Four of them said yes.

1. Calculate the test statistic for this hypothesis test.

AND

A pharmaceutical company developed a new drug to treat high cholesterol. In a clinical trial of the drug, the recorded response variable was the reduction in total cholesterol. The company will go into the next level of trials if there is evidence that the average reduction in cholesterol is greater than 20 points. (Please explain why it is a test 2 error and not a test 1 error)

The hypotheses for this experiment are: H0: μ = 20 Ha: μ > 20

What would be a Type II error in the context of this problem?

A. The average cholesterol reduction is actually greater than 20 points and the company moves forward into the next level of trials.

B. The average cholesterol reduction is actually greater than 20 points and the company does not move forward into the next level of trials.

C. The average cholesterol reduction is actually less than or equal to 20 points and the company moves forward into the next level of trials.

D. The average cholesterol reduction is actually less than or equal to 20 and the company does not move forward into the next level of trials.

Answer 1

1)

the test statistic z = -0.68

2)

for type II error":

B. The average cholesterol reduction is actually greater than 20 points and the company does not move forward into the next level of trials.