Question

A pharmaceutical company is testing a new drug. Of the 110 people that received the drug, 61 of the people's autoimmune disease went into remission. Using the old drug, the autoimmune disease for 50% of all the people treated went into remission.

When testing whether or not the new drug is more effective than the old drug at treating people's autoimmune disease (in terms of the percentage of cases going into remission), what would be the alternative hypothesis? Note: All decimals should be rounded to 2 decimal places.

Select One:

A) The proportion of people whose autoimmune disease that will go into remission using the new drug will not be 0.50 or 50%

B) The proportion of people whose autoimmune disease that will go into remission using the drug will be 0.50 or 55%

C) The proportion of people whose autoimmune disease that will go into remission using the new drug will be more than 0.50 or 50%

D) The proportion of people whose autoimmune disease that will go into remission using the new drug will be 0.55 or 55%

Answer 1

C) The proportion of people whose autoimmune disease that will go into remission using the new drug will be more than 0.50 or 50%

Explanation:

For the given hypothesis tests scenario, the null and alternative hypotheses are given as below:

Null hypothesis: H0: The proportion of people whose autoimmune disease that will go into remission using the new drug will be 0.50 or 50%

Alternative hypothesis: Ha: The proportion of people whose autoimmune disease that will go into remission using the new drug will be more than 0.50 or 50%

H0: p = 0.50 versus Ha: p > 0.50