Question

Suppose 216 subjects are treated with a drug that is used to treat pain and 52 of them developed nausea. Use a 0.05 significance level to test the claim that more than 20​% of users develop nausea.

Answer 1

Let p be the proportion of users who develop nausea.

The estimate of p is given by:

At 5% significance level to test the claim that more than 20​% of users develop nausea.

The hypothesis testing problem is:

Vs

The test statistic is:

The p value is:

by using z table:

Since p value >0.05, we are unable to reject the null hypothesis at 5% level of significance.

Therefore we do not have enough evidence to claim that more than 20​% of users develop nausea.