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Two types of medication for hives are being tested. The manufacturer claims that the new medication B is more effective than the standard medication A and undertakes a comparison to determine if medication B produces relief for a higher proportion of adult patients within a 30-minute time window. 20 out of a random sample of 200 adults given medication A still had hives 30 minutes after taking the medication. 12 out of another random sample of 200 adults given medication B still had hives 30 minutes after taking the medication. The hypothesis test is to be carried out at a 1% level of significance.

1. State the null and alternative hypotheses in words and in statistical symbols.
2. What statistical test is appropriate to use? Explain the rationale for your answer.
3. Would the test be right-tailed, left-tailed or two-tailed? Explain the rationale for your answer.
4. Describe an outcome that would result in a Type I error. Explain the rationale for your answer.
5. Describe an outcome that would result in a Type II error. Explain the rationale for your answer.

Answer 1