Question

A manufacturer of a new medication on the market for Crohn's disease makes a claim that the medication is effective in 85% of people who have the disease. One hundred seventy-five individuals with Crohn's disease are given the medication, and 135 of them note the medication was effective. Does this finding provide statistical evidence at the 0.05 level that the effectiveness is less than the 85% claim the company is making? Make sure to include parameter, conditions, calculations, and a conclusion in your answer.

Answer 1

since test statistic -2.91 is less than crtiical value 1.645 , therefore we reject null hypothesis

and conclude that the effectiveness is less than the 85% claim the company is making