Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

5. Suppose a drug company has 10 new drugs they are testing this year. For each drug, they will carry out a test of significance

image text in transcribed
5. Suppose a drug company has 10 new drugs they are testing this year. For each drug, they will carry out a test of significance based on a large clinical trial, comparing the drug to placebo. All the clinical trials will be conducted independently, and the drugs are unrelated to each other. Suppose that none of the drugs are really different from placebo. If the company uses a 5% threshold for p-values in all the tests, what is the chance that they will get at least one drug for which they will reject the null hypothesis and conclude that the drug is different from placebo? (Hint: For a single test, the chance of rejecting the null hypothesis even though it is true is out of 100. This means that for a single test, the chance of correctly accepting the null hypothesis is out of 100. Now use the complement rule and multiplication rule to find the chance of rejecting the null hypothesis on at least one test.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

A First Course In Differential Equations With Modeling Applications

Authors: Dennis G Zill

11th Edition

1337515574, 9781337515573

More Books

Students also viewed these Mathematics questions

Question

Define cost estimation

Answered: 1 week ago

Question

Subjective norms, i.e. the norms of the target group

Answered: 1 week ago