Question

Suppose 229 subjects are treated with a drug that is used to treat pain and 53 of them developed nausea. Use a 0.01 significance level to test the claim that more than 20​% of users develop nausea.

Identify the test statistic for this hypothesis test.
The test statistic for this hypothesis test is ?
​(Round to two decimal places as​ needed.)
Identify the​ P-value for this hypothesis test.
The​ P-value for this hypothesis test is ?

Identify the conclusion for this hypothesis test.
A.
Reject Upper H 0. There is sufficient evidence to warrant support of the claim that more than 20​% of users develop nausea.
B.
Reject Upper H 0. There is not sufficient evidence to warrant support of the claim that more than 20​% of users develop nausea.
C.
Fail to reject Upper H 0. There is not sufficient evidence to warrant support of the claim that more than 20​% of users develop nausea.
.D.
Fail to reject Upper H 0. There is sufficient evidence to warrant support of the claim that more than 20​% of users develop nausea.

Answer 1

Using the central limit theorem on a binomial random variable we can derive the following distribution:

Since we find that z stat does not lie in the rejection region, the sample is insignificant. We cannot reject the null hypothesis.

Ans is option C.