Question

A Pharmaceutical firm has requested that a medical doctor observe whether a new version of a drug actually shortened the length of time it takes for a patient to feel the benefits of the medication.  It can be assumed that the reaction time for the drug is normally distributed.  The doctor administered the drug and its new version to independent random samples of her patients.                                      

                                          New(1)                        Old(2)

Sample size                       10                               10

Mean                                 65 min.                       80 min.

Std. Dev.                            14 min.                       10 min.

If the new version is more costly to manufacture than the old version, what advice should the doctor give the pharmaceutical company? Use the 0.05 level of significance. (i.e., is the reaction time of the new version significantly faster than the old version?)

Answer 1