Suppose there is a test, , that yields the distribution of test outcomes for good drugs and

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Suppose there is a test, φ, that yields the distribution of test outcomes for good drugs and bad drugs seen in Figure 12.9. In this case, is it possible to create a rule for accepting and rejecting drugs that yields no Type I or Type II error? If so, be sure to show this threshold rule explicitly on the graph above. If not, explain why this is impossible.P bad drugs good drugs Figure 12.9. Bad drug and good drug distributions for Exercise 11.

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Health Economics

ISBN: 9781137029966

1st Edition

Authors: Jay Bhattacharya, Timothy Hyde, Peter Tu

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