Suppose the manufacturer of Advil, a common headache remedy, recently developed

Question

Suppose the manufacturer of Advil, a common headache remedy, recently developed a new formulation of the drug that is claimed to be more effective. To evaluate the new drug, a sample of 250 current users is asked to try it. After a one-month trial, 227 indicated the new drug was more effective in relieving a headache. At the same time a sample of 370 current Advil users is given the current drug but told it is the new formulation. From this group, 321 said it was an improvement. (1) State the decision rule for .02 significance level: H0: 2:: > Tc (Round your answer to 2 decimal places.) Reject Ho if z> (2)Compute the value of the test statistic. (Do not round the intermediate value. Round your answer to 2 decimal places.) Value of the test statistic

Explanation / Answer

This is one-tailed z-test. For 2% level of significance we get the critical value from normal table as 2.05

Q1 Answer is 2.05

Q2 z = (p1^ -p2^) / sqart [ P*Q* ((1/n1)+(1/n2))]

p1^ = 227/250

p2^ = 321/370

n1 = 250

n2 = 370

P = (227+321)/(250+370)

z = 8.12

Answer for Q2 is 8.12

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