In: Statistics and Probability
A drug company is developing a new drug called Phantol that it hopes will provide relief to patients who suffer from respiratory infections. Phantol was given to a random sample of 450 patients who had upper respiratory infections and 365 of these patients experienced relief. The drug is marketable if more than 75% of patients experience relief while using Phantol. a) Using a 5% significance level, test the hypothesis that more than 75% of patients who suffer from upper respiratory infections experience relief when using Phantol. (4 points) b) Based on your conclusion what type of error might you be making? (Explain) (2 points) 7 Professor: David Wozniak Final Exam c) What is the 95% confidence interval for the proportion of patients who should experience relief using Phantol? (3 points) d) What sample size would you need to find a 95% confidence interval with a margin of error of 0.02? (Hint: is it likely that the p=0.5?