Question

Many consumer groups feel that the U.S. Food and Drug Administration (FDA) drug approval process is too easy and, as a result, too many drugs are approved that are later found to be unsafe. On the other hand, a number of industry lobbyists have pushed for a more lenient approval process so that pharmaceutical companies can get new drugs approved more easily and quickly. The FDA wants to set up a hypothesis test to show that the new drug is safe before approving it by assuming it to be unsafe.

If you reject the null hypothesis based on the evidence, your conclusion should be that:

a. there is insufficient evidence that the new drug is safe

b. there is insufficient evidence that the new drug is unsafe

c. there is sufficient evidence that the new drug is safe

d. there is sufficient evidence that the new drug is unsafe

If you do not reject the null hypothesis based on the evidence, your conclusion should be that:

a. there is insufficient evidence that the new drug is safe

b. there is insufficient evidence that the new drug is unsafe

c. there is sufficient evidence that the new drug is safe

d. there is sufficient evidence that the new drug is unsafe

Answer 1

The FDA wants to set up a hypothesis test to show that the new drug is safe before approving it by assuming it to be unsafe i.e. the assumption is that the new drug is unsafe.

Hence,  Ho: The Null hypothesis is that the New drug is unsafe.

Ha: The New drug is safe.

1. If you reject the null hypothesis based on the evidence, your conclusion should be that:

As the Null hypothesis is rejected, it indicates that the drug is safe.

Option c: There is sufficient evidence that the new drug is safe.

2. If you do not reject the null hypothesis based on the evidence, your conclusion should be that:

Null hypothesis is not rejected, which indicates that the drug is unsafe.

Option a: there is insufficient evidence that the new drug is safe.