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7.15 FDA certification of new drugs. Pharmaceutical compa- nies spend billions of dollars per year on research and development of new drugs. The pharmaceutical company must subject each new drug to lengthy and involved testing before receiving the necessary permission from the Food and Drug Administration (FDA) to market the drug. The FDA's policy is that the pharmaceutical company must provide substantial evidence that a new drug is safe prior to receiving FDA approval, so that the FDA can confi- dently certify the safety of the drug to potential consumers. a. If the new drug testing were to be placed in a test of hy- pothesis framework, would the null hypothesis be that the drug is safe or unsafe? The alternative hypothesis? b. Given the choice of null and alternative hypotheses in part a, describe Type I and Type II errors in terms of this application. Define a and 3 in terms of this application. c. If the FDA wants to be very confident that the drug is safe before permitting it to be marketed, is it more im- portant that a or ß be small? Explain.

7.15 FDA certification of new drugs. Pharmaceutical compa- nies spend billions of dollars per year on research and development of new drugs. The pharmaceutical company must subject each new drug to lengthy and involved testing before receiving the necessary permission from the Food and Drug Administration (FDA) to market the drug. The FDA's policy is that the pharmaceutical company must provide substantial evidence that a new drug is safe prior to receiving FDA approval, so that the FDA can confi- dently certify the safety of the drug to potential consumers. a. If the new drug testing were to be placed in a test of hy- pothesis framework, would the null hypothesis be that the drug is safe or unsafe? The alternative hypothesis? b. Given the choice of null and alternative hypotheses in part a, describe Type I and Type II errors in terms of this application. Define a and 3 in terms of this application. c. If the FDA wants to be very confident that the drug is safe before permitting it to be marketed, is it more im- portant that a or ß be small? Explain.

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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7.15 FDA certification of new drugs. Pharmaceutical compa- nies spend billions of dollars per year on research and development of new drugs. The pharmaceutical company must subject each new drug to lengthy and involved testing before receiving the necessary permission from the Food and Drug Administration (FDA) to market the drug. The FDA's policy is that the pharmaceutical company must provide substantial evidence that a new drug is safe prior to receiving FDA approval, so that the FDA can confi- dently certify the safety of the drug to potential consumers. a. If the new drug testing were to be placed in a test of hy- pothesis framework, would the null hypothesis be that the drug is safe or unsafe? The alternative hypothesis? b. Given the choice of null and alternative hypotheses in part a, describe Type I and Type II errors in terms of this application. Define a and ß in terms of this application. c. If the FDA wants to be very confident that the drug is safe before permitting it to be marketed, is it more im- portant that a or ß be small? Explain.
Transcribed Image Text:7.15 FDA certification of new drugs. Pharmaceutical compa- nies spend billions of dollars per year on research and development of new drugs. The pharmaceutical company must subject each new drug to lengthy and involved testing before receiving the necessary permission from the Food and Drug Administration (FDA) to market the drug. The FDA's policy is that the pharmaceutical company must provide substantial evidence that a new drug is safe prior to receiving FDA approval, so that the FDA can confi- dently certify the safety of the drug to potential consumers. a. If the new drug testing were to be placed in a test of hy- pothesis framework, would the null hypothesis be that the drug is safe or unsafe? The alternative hypothesis? b. Given the choice of null and alternative hypotheses in part a, describe Type I and Type II errors in terms of this application. Define a and ß in terms of this application. c. If the FDA wants to be very confident that the drug is safe before permitting it to be marketed, is it more im- portant that a or ß be small? Explain.
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