Question
Let's say that one possible side effect of the drug oxycodone is nausea. The makers of oxycodone are working with the FDA to determine if
Let's say that one possible side effect of the drug oxycodone is nausea. The makers of oxycodone are working with the FDA to determine if they need to list this as a "common side effect" or not. Let's say that the FDA states that nausea needs to be listed as a common side effect if it's experienced by at least 10% of users. If the makers do not want to list this as a side effect, then they need to provide evidence that the true proportion of users who experience nausea is less than 10%, and that this needs to be done at a significance level of 0.01. In a clinical study involving the drug, the research team identifies that 39 out of 460 patients reported nausea.
(a) Complete hypothesis test to determine if nausea needs to be listed as a common side effect.
(b) Let's say that the true proportion who experience nausea after taking Oxycodone is truly 8.5%. What could the research team do to increase the likelihood that they meet the FDA's evidence requirement?
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