A medical survey in 2015 indicated that 48% of Australian adults prefer to take a generic drug than pay more for a name brand equivalent. A pharmaceutical company believes that with the financial crisis, the percentage of Australian adults willing to take a cheaper generic drug may have risen. The research department conducted a study where a random sample of Australian adults were asked whether or not they would accept a cheaper generic prescription drug. a) What type of hypothesis test would be appropriate to investigate the pharmaceutical company’s prediction? (b) What is the population we can draw conclusions about in this study? (c) The appropriate hypothesis test was conducted and a p-value of .110 was obtained. Based on the results of this study, the pharmaceutical company concludes that the percentage of Australian adults willing to take a cheaper generic prescription drug has remained the same, exactly 48%. Comment on the validity of this conclusion.
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
A medical survey in 2015 indicated that 48% of Australian adults prefer to take a generic drug than pay more for a name brand equivalent. A pharmaceutical company believes that with the financial crisis, the percentage of Australian adults willing to take a cheaper generic drug may have risen. The research department conducted a study where a random sample of Australian adults were asked whether or not they would accept a cheaper generic prescription drug.
a) What type of hypothesis test would be appropriate to investigate the pharmaceutical company’s prediction?
(b) What is the population we can draw conclusions about in this study?
(c) The appropriate hypothesis test was conducted and a p-value of .110 was obtained. Based on the results of this study, the pharmaceutical company concludes that the percentage of Australian adults willing to take a cheaper generic prescription drug has remained the same, exactly 48%. Comment on the validity of this conclusion. Provide justification for your answer.
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