Question

In order for a dose of Hepatitis  medicine to improve the condition of Hepatitis patients, the proportion of the antibiotic in the dose needs to be precisely 40%.  If the proportion of antibiotic is more or less than 40%, the patients will die.  Merck, a manufacturer of the medicine,  wants to determine if the proportion of  antibiotic in the doses that are currently manufactured is different than 40%.  If the determination is that there is a difference from 40%, Merck will spend fifty million dollars to improve the manufacturing process.

1. State the null and alternative hypotheses that Merck would test.  Use

   symbols in the hypotheses and define the parameter.

Ho:

Ha:

2. State the Type I error for this example.

Type I error: reject Ho when Ho is true(definition)

3.   State the Type II error for this example.

Type II error: Fail to reject Ho when Ho is false(definition)

4.   If you were a Hepatitis patient, which of the following probabilities would you

  select?  Explain. Circle your answer.

1. α = 0.15 and β = 0.01
2. α = 0.01 and β = 0.15

Answer 1