Question

A drug company is advertising that its snore-curing product has a success rate of at least 90%. A doctor has been prescribing the product to his customers, however she’s disap- pointed with the results. She decides to do an experiment on a random sample of 50 snorers. She puts them on a course to use the product in 2 weeks. After that, she calls them back to see whether the snoring has stopped. The results were: 42 stopped snoring and the rest still had it. Does the doctor has sufficient evidence to claim that the drug company’s advertisement was misleading at 5% significance level?

1. H_o: p (= ; <= ; >=)   0.9

H_a: p (< > ; > ; <)   0.9

2. Statistical test: (z / t)   test

3. Level of significance (be careful as to one-tailed or two-tailed)

4. Set up critical values (Write the value in the box, include "-" sign if negative, if two values, just write the positive one)

5. Gather sample data: p_hat =  ; n = 50

6. Calculate test statistic (write your answer correct to 2 decimal places)  

6*. The p-value of the test is

7. Make statistical conclusion: (Reject / Do not reject)   the null hypothesis. There is (sufficient/insufficient)   evidence that the the drug company's advertising was misleading at 5% level of significance.

Answer 1