Suppose 224 subjects are treated with a drug that is used to treat pain and 53 of them develop nausea. Use a 0.01 significance level to test the claim that more than 20% of users develop nausea
Solution :
This is the right tailed test .
The null and alternative hypothesis is
H0 : p = 0.20
Ha : p > 0.20
n = 224
x = 53
= x / n = 53 / 220 = 0.2366
P0 = 0.20
1 - P0 = 1 - 0.20 = 0.80
z = - P0 / [P0 * (1 - P0 ) / n]
= 0.2366 - 0.20 / [(0.20 * 0.80) / 224]
= 1.37
Test statistic = 1.37.
P(z > 1.37) = 1 - P(z < 1.37) = 1 - 0.9147 = 0.0853
P-value = 0.0853
= 0.01
P-value >
Fail to reject the null hypothesis .
There is not sufficient evidence to test the claim that more than 20% of users develop nausea .
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