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research group wants to compare a generic drug to a brand name drug. The response rate of the brand name drug is about 30%. Assume
research group wants to compare a generic drug to a brand name drug. The response rate of the brand name drug is about 30%. Assume the FDA will approve the generic drug if its response rate is not less than the response rate of the brand name drug by 5%. In addition, FDA wants to have high probability (i.e., 99%) to disapprove the generic drug when in fact its response rate is worse than that of the brand name drug by more than 5%. (a) [5 points] Please construct the null hypothesis and the alternative hypothesis using statistical notations. (b) [10 points] Assume equal allocation of patients to both treatment groups. How large should the sample size be in order to have 95% power to claim that the generic drug is as good as the brand name drug when in fact it is the case? The following information may be useful: z0.1 1.28, z0.05 1.64, z0.025 1.96, z0.01 2.33, z0.005 2.58. z is the 100(1 )th percentile of the N (0, 1)
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