A government drug regulator believes that the toxicity level in
a new drug is above the industry
standard and is therefore unsafe for consumers. As the final
arbitrator you are the person who has
reviewed both the manufacture’s information and the government’s
claim.
You have the final authority to approve or deny this consumer drug
….
Explain what would be a Type I and Type II error in this
case.
Which error would be more serious?
Explain how both of these errors could be minimized
simultaneously.
Your statements should be:
You may use supporting articles, textbook references, and even personal experience (as long as it relevant and empirical in nature).
Solution:
H0 : toxicity level in a new drug is above the industry standard
H1 : toxicity level in a new drug is appropriate as per the industry standard
type I error : Rejecting H0 when it is true : If I pass the drug saying that the toxicity level in a new drug is appropriate as per the industry standard but actually it is above the industry standard
type II error : Accepting H0 when it is false : If I do not pass the drug saying toxicity level in a new drug is above the industry standard but actually it is appropriate as per the industry standard
type I error is more serious. since, an inappropriate drug with higher toxicity level as per the industry standard will be used
To reduce both the error simultaneously, the sample size of population being tested with drug should be increased
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