A drug tester claims that a drug cures a rare skin disease 68% of the time. The claim is checked by testing the drug on 100 patients. If at least 60 patients are cured, the claim will be accepted.
Find the probability that the claim will be rejected assuming that the manufacturer's claim is true. Use the normal distribution to approximate the binomial distribution if possible.
P(curing the disease), p = 0.68
q = 1 - p = 0.32
Sample size. n = 100
np = 100x0.68 = 68
np = 100x0.32 = 32np and nq 5. So, normal approximation to binomial distribution can be used.
P(X < A) = P(Z < (A - mean)/standard deviation)
Mean = 100 x 0.68 = 68
Standard deviation =
=
= 4.665
P(at least 60 patients are cured) = P(X 60)
= 1 - P(X < 59.5) (continuity correction applied)
= 1 - P(Z < (59.5 - 68)/4.665)
= 1 - P(Z < -1.82)
= 1 - 0.0344
= 0.9656
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