In: Statistics and Probability
A drug tester claims that a drug cures a rare skin disease 84% of the time. The claim is checked by testing the drug on 100 patients. If at least 80 patients are cured, the claim will be accepted. Find the probability that the claim will be rejected assuming that the manufacturer's claim is true. Use the normal distribution to approximate the binomial distribution if possible.. ROund to four decimal places
Solution:
Given that,
P = 0.84
1 - P = 0.16
n = 100
Here, BIN ( n , P ) that is , BIN (100 , 0.84)
According to normal approximation binomial,
X Normal
Mean = = n*P = 84
Standard deviation = =n*p*(1-p) = 13.44
We using continuity correction factor
P(X a ) = P(X > a - 0.5)
P(x > 79.5) = 1 - P(x < 79.5)
= 1 - P((x - ) / < (79.5 - 84) / 13.44)
= 1 - P(z < -1.23)
= 1 - 0.1093
= 0.8907
Probability = 0.8907