The director of research and development is testing a new drug. She wants to know if there is evidence at the 0.01 level that the drug stays in the system for more than 327 minutes. For a sample of 67 patients, the mean time the drug stayed in the system was 330 minutes. Assume the population variance is known to be 529. Determine the test-z and make a decision to reject or fail to reject the null hypothesis.
Solution :
This is the right tailed test .
The null and alternative hypothesis is ,
H0 : = 327
Ha : > 327
Test statistic = z
= ( - ) / / n
= (330 - 327 ) /23 / 67
= 1.07
Test statistic = 1.07
P(z > 1.07) = 1 - P(z < 1.07) = 1 - 0.8577 = 0.1423
P-value = 0.1423
= 0.01
P-value >
Fail to reject the null hypothesis .
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