Question
The sales representative of a pharmaceutical company claims that a new drug cures fever in 90 % of the cases. When it is administered by
The sales representative of a pharmaceutical company claims that a new drug cures
fever in 90 % of the cases. When it is administered by a doctor to 80 patients, it cured
only 68 patients.
i) What is the variable of interest in this problem?
ii) What is the parameter of interest?
iii) Test the claim of the sales representative at significance level of 0.05 using 5-
step procedure of hypothesis testing by using critical values and interpret the
results.
iv) Calculate the p-value of this test and make decision.
v) The statistical test you applied in part iii) cannot be applied unless 4 assumptions
of Binomial distribution are met. Verify those 4 assumptions related to the
above question(Don't write just the assumptions)
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