7. You are an FDA Administrator deciding whether or not a new drug should be marketed. The µ = 6 and σ = 2 for this drug’s ability to reduce headache pain in people suffering from migraines. What is your 99% confidence interval for this population? (Include lower and higher numbers) (so alpha = .01 – two tail)
Answer)
As the population s.d is known we can use standard normal z table to estimate the answer
Critical value z for 99% confidence level from z table is 2.58
Margin of error (MOE) = Z*S.D/√N
MOE = 2.58*2 (as sample size is not mentioned)
MOE = 5.16
Confidence interval is given by
Mean - MOE <u < Mean + MOE
Given mean is 6
0.84 < u < 11.16
7. You are an FDA Administrator deciding whether or not a new drug should be marketed....