A drug manufacturing company is debating whether a vaccine is safe enough to be marketed. The company claims that the vaccine is 90% effective; that is, when tried on a person, the chance for that person to develop immunity is 0.9. The federal drug agency, however, believes that the claim is exaggerated and that the drug is 40% effective. To test the company claim, the following procedure is devised: The vaccine will be tried on 10 people. If 8 or more people develop immunity, the company claim will be granted. Find the probability the company claim will be granted incorrectly, that is, the federal drug agency is correct in its assertion.
A drug manufacturing company is debating whether a vaccine is safe enough to be marketed. The company claims that the vaccine is 90% effective; that is, when tried on a person, the chance for that person to develop immunity is 0.9. The federal drug agency, however, believes that the claim is exaggerated and that the drug is 40% effective. To test the company claim, the following procedure is devised: The vaccine will be tried on 10 people. If 8 or more people develop immunity, the company claim will be granted. Find the
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