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A pharmaceutical company is trying to determine if a new drug is more effective than the current standard drug. The company tracks random samples of

A pharmaceutical company is trying to determine if a new drug is more effective than the current standard drug. The company tracks random samples of patients on each drug and calculates the proportion that see an improvement in symptoms after six months. The results of the data collected are shown below.

New Drug Old Drug

Successes 352 Successes 653

Observations 500 Observations 1000

Proportion 0.704 Proportion 0.653

Confidence Level 95%

z-score 1.98

p-value 0.0239

What is the level of significance?

The null hypothesis is H0:pnew

The alternative hypothesis is Ha:p new

Should H0 be rejected or does H0 fail to be rejected?

What conclusion can be drawn from the data?

What are the population parameters?

Sufficient or Insufficient evidence exists to support the claim that more patients on the new drug see improvements in symptoms than patients on the current drug.

Pick The difference in the sample sizes The difference in the two samples means The proportion of all patients on each drug that see improvements in symptoms The proportion of patients in the sample on each drug that see improvements in symptoms

Pick < = >

Pick < = >

Pick Reject H Fail to reject H

Pick Insufficient Sufficient

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