An drug company claims that at least 90% of individuals taking a new drug for th

Question

An drug company claims that at least 90% of individuals taking a new drug for the treatment of rheumatoid arthritis (RA) experience an improvement in their health status within 3 months. To investigate this claim, the FDA randomly selects 50 volunteers with RA and give them a 3 months supply of the drug. Let p denote the probability that an individual experiences an improvement in their health status Consider the following decision rule: Reject the claim that p 2 .90 in favor of the conclusion that p

Explanation / Answer

a) probability that the claim is rejected =P(X<=45) =x=045 (50Cx)(0.9)x(0.1)50-x =0.5688

b) probability that claim is not rejected =P(X>=46) =x=4650 (50Cx)(0.7)x(0.3)50-x =0.0002

please revert for any clarification required

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