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HYPOTHESIS ABOUT DIFFERENCE IN PROPORTIONS Suppose the Acme Drug Company develops a new drug, designed to...

HYPOTHESIS ABOUT DIFFERENCE IN PROPORTIONS
Suppose the Acme Drug Company develops a new drug, designed to prevent colds. The company states that the drug is less effective on seniors than on children. To test this claim, they choose a simple random sample of 80 seniors and 70 children. At the end of a whole year, 16 of the seniors caught a cold; and 11 of the children caught a cold. Based on these findings, can we conclude that the drug is less effective for seniors than for children? Use = 0.05 level of significance.

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