Question

In a study to evaluate drug efficacy, the manufacturer of a new type of generic drug for treating a
disease wants to investigate the effectiveness of this generic drug as compared to the traditional
brand name drug, At the present time, the brand name drug is the only approved treatment for the
disease. Patients diagnosed with the disease have low concentration of a specific factor in their
blood. Treatment with the brand name drug will result in an increase in the concentration of the
specific factor in the blood. An experiment is conducted in which 10 patients currently with the
disease are randomly assigned to receive either the generic drug or the brand name drug for a
period of 9 months. After 9 months have elapsed, a measure of the concentration level of the
specific factor in the blood is obtained for each patient. The results are shown in Table Q1.

Brand name drug	11	9	8	10	10
Generic drug	9	8	7	9	8

(a) At a 5 % level of significance, apply a two-sample t test to determine whether there is
any difference in the concentration levels between brand name drug and generic drug.
Comment on the results.

(b) Construct a 90 % confidence interval for the difference in the mean concentration
levels between brand name drug and generic drug.

(c) Suppose now the manufacturer wishes to demonstrate whether the concentration level
of brand name drug exceeds that of generic drug by more than 1, apply a two-sample t
test to analyze the problem based on 1 % level of significance.

Please show workings and do not use excel to generate answer.

Answer 1