A drug company wants to sell a drug that promises to help people lose at least 3

Question

A drug company wants to sell a drug that promises to help people lose at least 3 pounds per week. This seems like a very large weight loss and you think there is something wrong. You have 15 friends using the drug; they lose an average of 2.8 lbs per week with a standard deviation of .5 lbs. Use this sample information to test whether the Drug Company should be making these claims. Use a significance level of .05.

a) What is the null hypothesis?
b) What is the alternate hypothesis?
c) Is this a one tailed or two tailed test?

Explanation / Answer

Set Up Hypothesis
Null, drug that promises to help people lose at least 3 H0: U>=3
Alternate, H1: U<3
Test Statistic
Population Mean(U)=3
Sample X(Mean)=2.8
Standard Deviation(S.D)=0.5
Number (n)=15
we use Test Statistic (t) = x-U/(s.d/Sqrt(n))
to =2.8-3/(0.5/Sqrt(15))
to =-1.549
| to | =1.549
Critical Value
The Value of |t | with n-1 = 14 d.f is 1.761
We got |to| =1.549 & | t | =1.761
Make Decision
Hence Value of |to | < | t | and Here we Do not Reject Ho
P-Value :Left Tail -Ha : ( P < -1.5492 ) = 0.07182
Hence Value of P0.05 < 0.07182,Here We Do not Reject Ho

[ANSWERS]
1. H0: U>=3, H1: U<3
2. one tailed

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