Basic Business Statistics, Student Value Edition
14th Edition
ISBN: 9780134685113
Author: Mark L. Berenson, David M. Levine, David F. Stephan, Kathryn Szabat
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 9, Problem 11PS
Many consumer groups feel that U.S. Food and Drug Administration (FDA) drug approval process is too easy and, as a result, too many drugs are approved that are later found to be unsafe. On the other hand, a number of industry lobbyists have pushed for a more lenient approval process so that pharmaceutical companies can get new drugs approved more easily and quickly. Consider a null hypothesis that a new, unapproved drug is unsafe and an alternative hypothesis that a new, unapproved drug is safe.
a. Explain the risks of committing a Type I or Type II error.
b. Which type of error are the consumer groups trying to avoid? Explain.
c. Which type of error are the industry lobbyists trying to avoid? Explain.
d. How would t be possible to lower the chances of both Type I and Type II errors?
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Many consumer groups feel that the U.S. Food and Drug Administration (FDA) drug approval process is too easy and, as a result, too many drugs are approved that are later found to be unsafe. On the other hand, a number of industry lobbyists have pushed for a more lenient approval process so that pharmaceutical companies can get new drugs approved more easily and quickly. The FDA wants to set up a hypothesis test to show that the new drug is safe before approving it by assuming it to be unsafe.
Match the followings concepts to their correct interpretations in the context of the question:
Null hypothesis
Alternative hypothesis
Type I error
Type II error
A.
The new drug is unsafe but the FDA concludes that it is…
A researcher hypothesizes that Drug A is more effective than Drug B. In conducting an analysis to test this hypothesis, how should the null hypothesis be stated?
A researcher conducts a research study to examine whether there is a difference between two treatments regarding anxiety. Which of the following is consistent conceptually with the null hypothesis?
a. The second treatment is less effective than the first treatment regarding anxiety.
b. The first treatment is less effective than the second treatment regarding anxiety.
c. There is a difference between the two treatments among the general population regarding anxiety.
d. There is no difference between the two treatments among the general population regarding anxiety.
Chapter 9 Solutions
Basic Business Statistics, Student Value Edition
Ch. 9 - If you use a 0.005 level of significance in a...Ch. 9 - If you use a 0.05 level of significance in a...Ch. 9 - If you use a 0.10 level of significance in a...Ch. 9 - If you use a 0.01 level of significance in a...Ch. 9 - What is your decision in problem 9.4 if...Ch. 9 - What is the p -value if, in a two-tail hypothesis...Ch. 9 - In problem 9.6, what is your statistical decision...Ch. 9 - What is the p-value if, in a two -tail hypothesis...Ch. 9 - In the U.S. legal system, a defendant is presumed...Ch. 9 - Suppose the defendant in Problem 9.9 is presumed...
Ch. 9 - Many consumer groups feel that U.S. Food and Drug...Ch. 9 - As a result of complaints from both students and...Ch. 9 - Do business senior at your school prepare for...Ch. 9 - The quality- control manager at a light emitting...Ch. 9 - Suppose that in problem 9.14, the standard...Ch. 9 - A bottled water distributor wants to determine...Ch. 9 - Suppose that in Problem 9.16, the standard...Ch. 9 - If, In a sample of n=16 selected from a normal...Ch. 9 - In Problem 9.18, how many degrees of freedom does...Ch. 9 - In Problem 9.18, 9.19, what are the Critical...Ch. 9 - In, Problem 9.18, 9.19, and 9.20, what is your...Ch. 9 - If, in a sample of n=16 selected from a...Ch. 9 - If, in a sample of n=160 selected from a...Ch. 9 - You are the manager of a restaurant for a...Ch. 9 - A manufacturer of chocolate candies uses machines...Ch. 9 - A marketing researcher wants to estimate the mean...Ch. 9 - The U.S. Department of Transportation requires...Ch. 9 - The file FastFood contains the amount that a...Ch. 9 - An insurance company has the business objective of...Ch. 9 - The following data (in Drink) represent the amount...Ch. 9 - One of the major measures of the quality of...Ch. 9 - A manufacturing company produces steel housings...Ch. 9 - One operation of a steel mill is to cut pieces of...Ch. 9 - In Problem 3.69 on page 156, you were introduced...Ch. 9 - We Are Social and Hootsuite reported that the...Ch. 9 - In a one-tail hypothesis test where you reject H0...Ch. 9 - In Problem 9.36, what is your statistical decision...Ch. 9 - In a one-tail hypothesis test where you reject H0...Ch. 9 - In Problem 9.38, what is your statistical decision...Ch. 9 - In a one-tail hypothesis test where you reject H0...Ch. 9 - In Problem 9.40, what is your statistical decision...Ch. 9 - In a one-tail hypothesis test where you reject H0...Ch. 9 - In Problem 9.42, what is your statistical decision...Ch. 9 - In a one-tail hypothesis test where you reject H0...Ch. 9 - In Problem 9.44, what is your statistical decision...Ch. 9 - The Washington Metropolitan Area Transit Authority...Ch. 9 - CarMD reports that after two years of flat U.S....Ch. 9 - Patient waiting is a common phenomenon the...Ch. 9 - You are the manager of a restaurant that delivers...Ch. 9 - A Survey of nonprofit organization showed that...Ch. 9 - The population mean waiting time to check out of a...Ch. 9 - If, a random sample of 400 items, 88 are...Ch. 9 - In Problem 9.52, if the null hypothesis is that 20...Ch. 9 - In Problem 9.52 and 9.53, suppose you are testing...Ch. 9 - According to a recent National Association of...Ch. 9 - The worldwide market share for the Chrome web...Ch. 9 - One of the issues facing organizations Is...Ch. 9 - What are companies’ biggest obstacles to...Ch. 9 - A cellphone provider has the business objective of...Ch. 9 - Actuation Consulting conducted a global survey of...Ch. 9 - What is the difference between a null hypothesis,...Ch. 9 - What is the difference between a Type I error and...Ch. 9 - What is meant by the power of a test?Ch. 9 - What is the difference between a one -tail test...Ch. 9 - What is meant by a p-value?Ch. 9 - How can a confidence interval estimate for the...Ch. 9 - What is the six-step critical value approach to...Ch. 9 - What is the five-step p-value approach to...Ch. 9 - In hypothesis testing, the common level of...Ch. 9 - Financial institutions utilize prediction models...Ch. 9 - IAB conducted a study of 821 U.S. adults to...Ch. 9 - The owner of a speciality coffee shop wants to...Ch. 9 - An auditor for a government agency was assigned...Ch. 9 - A bank branch located in a commercial district of...Ch. 9 - Call centers today play an important role in...Ch. 9 - An important quality characteristic used by the...Ch. 9 - Studies conducted by the manufacturer of Boston...Ch. 9 - The manufacturer of Boston and Vermont asphalt...Ch. 9 - Referring to the results of problems 9.76 through...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.Similar questions
- . The National Institute of Mental Health published an article stating that in any one-year period, approximately 9.5 percent of American adults suffer from depression or a depressive illness. Suppose that in a survey of 100 people in a certain town, seven of them suffered from depression or a depressive illness. If you were conducting a hypothesis test to determine if the true proportion of people in that town suffering from depression or a depressive illness is lower than the percent in the general adult American population, what would the null and alternative hypotheses be?arrow_forwardA researcher hypothesizes that Drug A is more effective than Drug B. In conducting an analysis to test this hypothesis, how should the null hypothesis be stated? a. H0: μDrug A = μDrug B b. H0: μDrug A > μDrug B c. H0: μDrug A ≠ μDrug B d. H0: μDrug A < μDrug Barrow_forwardFind the Type II error given that the null hypothesis, H0, is: there are no more than 15% of structures in the county were built without permits.And, the alternative hypothesis, Ha, is: a building inspector claims that more than 15% of structures in the county were built without permits. Select the correct answer below: The building inspector concludes that more than 15% of the structures in the county were built without permits when, in fact, no more than 15% of the structures were built without permits. The building inspector concludes that more than 15% of the structures in the county were built without permits when, in fact, more than 15% of the structures were built without permits. The building inspector cannot conclude that more than 15% of the structures in the county were built without permits when, in fact, no more than 15% of the structures were built without permits. The building inspector cannot conclude that more than 15% of the structures in the county were…arrow_forward
- Do sit down restaurant franchises and fast food franchises differ significantly in stock price? Specifically, is the average stock price for sit-down restaurants different from the average stock price for fast food restaurants? If sit down restaurants are considered group 1 and fast food restaurants are group 2, what are the hypotheses of this scenario?arrow_forwardA researcher wants to determine if a new advertising campaign improves the amount of time kids spend reading compared to the general population. If she rejects the null hypothesis, she has decided that the advertising campaign _____________ and that her sample of kids _____________. improves reading; is different from the general population doesn’t improve reading; is different from the general population improves reading; is the same as the general population doesn’t improve reading; is the same as the general populationarrow_forwardAn organization published an article stating that in any one-year period, approximately 7.5 percent of adults in a country suffer from depression or a depressive illness. Suppose that in a survey of 100 people in a certain town, six of them suffered from depression or a depressive illness. Conduct a hypothesis test to determine if the true proportion of people in that town suffering from depression or a depressive illness is lower than the percent in the general adult population in the country.arrow_forward
- A decision to reject the null hypothesis means you have demonstrated that the treatment has no effectarrow_forwardadditionally does this reject the null hypothesisarrow_forwardA certain university claims that for the last school year the proportion of students who were not able to earn a college diploma is at most 25%. The claim is found in the alternative hypothesis. Is this true or false? What is the null hypothesis?What is the alternative hypothesis?arrow_forward
- Come up with your own hypothesis testing scenario. What is an example of a null and research hypothesis, and consider what it would mean if you came up with a significant results?arrow_forwardAfter a researcher states an alternative hypothesis, the null hypothesis would be stated in a way that makes the two hypotheses ________ and ________. assumed; independent equal; independent all-inclusive; mutually exclusive equal; robustarrow_forwardTwo observational studies of handwashing times were conducted with 59 men and 59 women. Of the 59 men, 19 were observed not washing their hands. Of the 59 women, 8 were observed not washing their hands. Let p1 population proportion of women not washing their hands, and p2 population proportion of men not washing their hands. The claim is that women are 50% more likely to wash their hands than men. The hypothesis is, Null hypothesis: H0:p1-p2≤0.50 Alternative hypothesis: Ha:p1-p2>0.50 Test the hypothesis and determine the significance using a two proportion z-test.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
MATLAB: An Introduction with ApplicationsStatisticsISBN:9781119256830Author:Amos GilatPublisher:John Wiley & Sons Inc
Probability and Statistics for Engineering and th...StatisticsISBN:9781305251809Author:Jay L. DevorePublisher:Cengage Learning
Statistics for The Behavioral Sciences (MindTap C...StatisticsISBN:9781305504912Author:Frederick J Gravetter, Larry B. WallnauPublisher:Cengage Learning
Elementary Statistics: Picturing the World (7th E...StatisticsISBN:9780134683416Author:Ron Larson, Betsy FarberPublisher:PEARSON
The Basic Practice of StatisticsStatisticsISBN:9781319042578Author:David S. Moore, William I. Notz, Michael A. FlignerPublisher:W. H. Freeman
Introduction to the Practice of StatisticsStatisticsISBN:9781319013387Author:David S. Moore, George P. McCabe, Bruce A. CraigPublisher:W. H. Freeman
MATLAB: An Introduction with Applications
Statistics
ISBN:9781119256830
Author:Amos Gilat
Publisher:John Wiley & Sons Inc
Probability and Statistics for Engineering and th...
Statistics
ISBN:9781305251809
Author:Jay L. Devore
Publisher:Cengage Learning
Statistics for The Behavioral Sciences (MindTap C...
Statistics
ISBN:9781305504912
Author:Frederick J Gravetter, Larry B. Wallnau
Publisher:Cengage Learning
Elementary Statistics: Picturing the World (7th E...
Statistics
ISBN:9780134683416
Author:Ron Larson, Betsy Farber
Publisher:PEARSON
The Basic Practice of Statistics
Statistics
ISBN:9781319042578
Author:David S. Moore, William I. Notz, Michael A. Fligner
Publisher:W. H. Freeman
Introduction to the Practice of Statistics
Statistics
ISBN:9781319013387
Author:David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:W. H. Freeman
Statistics 4.1 Introduction to Inferential Statistics; Author: Dr. Jack L. Jackson II;https://www.youtube.com/watch?v=QLo4TEvBvK4;License: Standard YouTube License, CC-BY