Problem 3, Colquhoun (2014) claimed that, "if you use p=0.05 to suggest that you have made a discovery, you will be wrong at least 30% of the time." He uses the following example. Suppose you pick a drug at random from 1000 candidate drugs and run a randomized controlled trial to determine whether the drug truly is effective. You perform a hypothesis test that has a significance level of 0.05 and a power of 0.8. A Write the null and alternative hypothesis for this hypothesis test, using words only (no math). B What is the probability of committing a Type l Error on this single hypothesis test? C. hat is the probability of committing a Type Il Error on this single hypothesis test? D. If you independently run experiments and hypothesis tests for four drugs, what is the probability of committing at least one Type l Error when performing the four hypothesistests? E. 10% of the drugs truly have an effect, and the other 90% are no different from placebo. Find the probability that your randomly chosen drug has an effect, given that you rejected the nullhypothesis

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Problem 3, Colquhoun (2014) claimed that, "if you use p=0.05 to suggest that you have made a
discovery, you will be wrong at least 30% of the time." He uses the following example.
Suppose you pick a drug at random from 1000 candidate drugs and run a randomized controlled trial to
determine whether the drug truly is effective. You perform a hypothesis test that has a significance level
of 0.05 and a power of 0.8.
A Write the null and alternative hypothesis for this hypothesis test, using words only (no math).
B
What is the probability of committing a Type l Error on this single hypothesis test?
C. hat is the probability of committing a Type Il Error on this single hypothesis test?
D. If you independently run experiments and hypothesis tests for four drugs, what is the
probability of committing at least one Type l Error when performing the four hypothesistests?
E. 10% of the drugs truly have an effect, and the other 90% are no different from placebo. Find the
probability that your randomly chosen drug has an effect, given that you rejected the nullhypothesis
Transcribed Image Text:Problem 3, Colquhoun (2014) claimed that, "if you use p=0.05 to suggest that you have made a discovery, you will be wrong at least 30% of the time." He uses the following example. Suppose you pick a drug at random from 1000 candidate drugs and run a randomized controlled trial to determine whether the drug truly is effective. You perform a hypothesis test that has a significance level of 0.05 and a power of 0.8. A Write the null and alternative hypothesis for this hypothesis test, using words only (no math). B What is the probability of committing a Type l Error on this single hypothesis test? C. hat is the probability of committing a Type Il Error on this single hypothesis test? D. If you independently run experiments and hypothesis tests for four drugs, what is the probability of committing at least one Type l Error when performing the four hypothesistests? E. 10% of the drugs truly have an effect, and the other 90% are no different from placebo. Find the probability that your randomly chosen drug has an effect, given that you rejected the nullhypothesis
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