When a drug is recalled for safety concerns (e.g., too many people having serious adverse reactions), the

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When a drug is recalled for safety concerns (e.g., too many people having serious adverse reactions), the pharmaceutical company making the drug can only re-issue it by convincing the FDA that the reformulated version of the drug is safer than the original version.

a. In words, what are the null and alternative hypotheses for this situation?

b. Describe the possible type I and type II errors in this scenario.
c. Which of the two possible errors is worse, and why? On that basis, how should the FDA determine the a level for testing whether the reformulated drug is safer?

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Modern Mathematical Statistics With Applications

ISBN: 9783030551551

3rd Edition

Authors: Jay L. Devore, Kenneth N. Berk, Matthew A. Carlton

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