Many consumer groups feel that the Country A drug approval process is too easy and, as a result, too many drugs are approved that are later found to be unsafe. On the other hand, a number of industry lobbyists have pushed for a more lenient approval process so that pharmaceutical companies can get new drugs approved more easily and quickly. Consider a null hypothesis that a new, unapproved drug is unsafe and an alternative hypothesis that a new, unapproved drug is safe. Complete parts (a) through (d) below.

a. Explain the risks of committing a Type I or Type II error. Choose the correct answer below.

A.

A Type I error would be incorrectly failing to approve an unsafe drug. A Type II error would be incorrectly approving a safe drug.

B.

A Type I error would be incorrectly approving an unsafe drug. A Type II error would be incorrectly failing to approve a safe drug.

C.

A Type I error would be incorrectly approving a safe drug. A Type II error would be incorrectly failing to approve an unsafe drug.

D.

A Type I error would be incorrectly failing to approve a safe drug. A Type II error would be incorrectly approving an unsafe drug.

Part 2b. Which type of error are the consumer groups trying to avoid? Explain. Choose the correct answer below.

A.

The consumer groups are trying to avoid a Type II error because they think that too many unsafe drugs are approved.

B.

The consumer groups are trying to avoid a Type I error because they think that too many safe drugs are unapproved.

C.

The consumer groups are trying to avoid a Type I error because they think that too many unsafe drugs are approved.

D.

The consumer groups are trying to avoid a Type II error because they think that too many safe drugs are unapproved.

Part 3c. Which type of error are the industry lobbyists trying to avoid? Explain. Choose the correct answer below.

A.

The industry lobbyists are trying to avoid a Type I error because they think that the process of approving safe drugs is hard.

B.

The industry lobbyists are trying to avoid a Type I error because they think that the process of approving safe drugs is too easy.

C.

The industry lobbyists are trying to avoid a Type II error because they think that the process of approving safe drugs is too easy.

D.

The industry lobbyists are trying to avoid a Type II error because they think that the process of approving safe drugs is hard.

Part 4d. How could it be possible to lower the chances of both Type I and Type II errors? Choose the correct answer below.

A.

Increase the sample size.

B.

Increase the value of

.

C.

Lower the value of

.

D.

Lower the value of

.