In clinical tests of the drug Lipitor, 800 patients were treated with 10 mg doses of Lipitor, and 16 of those patients experienced flu symptoms (based on data from Parke-Davis). Use a 0.01 significance level to test the claim that the proportion of treated patients who experienced flu symptoms is greater than 0.019 (0.019 is the rate of flu symptoms for patients not given the treatments).
a) State the claim in words.
b) State the null and alternative hypothesis in symbolic form.
c) Identify the significance level.
d) Identify the appropriate test statistic formula.
e) State the rejection criteria in terms of the test statistic.
f) Compute the value of the test statistic.
g) Conclusion.
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