Question

Suppose 249 subjects are treated with a drug that is used to treat pain and 51 of them develop nausea. use a 0.01 significance level to test the claim that more than 20% of users develop nausea

Answer 1

To Test :-

H0 :- P = 0.2

H1 :- P > 0.2

n = 249
P = X / n = 0.2048

Test Statistic :-


Z = 0.19

Test Criteria :-
Reject null hypothesis if

= 0.19 < 2.326, hence we fail to reject the null hypothesis
Conclusion :- We Fail to Reject H0

Decision based on P value
P value = P ( Z > 0.19 )
P value = 0.4247
Reject null hypothesis if P value <
Since P value = 0.4247 > 0.01, hence we fail to reject the null hypothesis
Conclusion :- We Fail to Reject H0

There is insufficient evidence to support the claim that more than 20% of users develop nausea at 1% level of significance.