Power A drug manufacturer claims that fewer than 10% of patients who take its new drug for treating Alzheimer’s disease will experience nausea. To test this claim, a significance test is carried out of H0 : p = 0.10 Ha : p < 0.10 You learn that the power of this test at the 5% significance level against the alternative p = 0.08 is 0.29.

(a) Explain in simple language what “power = 0.29”

means in this setting.

(b) You could get higher power against the same alternative with the same a by changing the number of measurements you make. Should you make more measurements or fewer to increase power? Explain.

(c) If you decide to use a = 0.01 in place of a = 0.05, with no other changes in the test, will the power increase or decrease? Justify your answer.

(d) If you shift your interest to the alternative p = 0.07 with no other changes, will the power increase or decrease? Justify your answer.