A pharmaceutical company claims 90% success rate of a newly invented drug to treat arthritis pain. To examine the claim, a doctor administered the prescribed dose to 10 arthritis patients. She observed Y, the number of participants for which the drug was effective. A test is defined so as to reject Ho: p = 0.9 in favour of Ha: p< 0.9 by the rejection region {y

A First Course in Probability (10th Edition)
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ISBN:9780134753119
Author:Sheldon Ross
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Chapter1: Combinatorial Analysis
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A pharmaceutical company claims 90% success rate of a newly invented drug to treat
arthritis pain. To examine the claim, a doctor administered the prescribed dose to 10
arthritis patients. She observed Y, the number of participants for which the drug was
effective. A test is defined so as to reject Ho: p = 0.9 in favour of Ha: p < 0.9 by
the rejection region {y < k} where k is a positive integer. Note that p is the population
proportion of arthritis patients for which the drug was effective.
(a) State what is meant by Type I and Type II errors in this context.
(b) Find the value of a, the level of the test, if k = 6.
(c) For a = 0.05, what should be the value of k if the rejection region of the test is
{y <k}?
(d) Find the power of the test for p = 0.3, 0.5, 0.7, 0.9.
(e) Sketch a graph of the power function against p (0 ≤ p ≤ 1), and comment on how
the power changes as p changes. [Hint: You may use Table 1 in Appendix 3 of
WMS.]
Transcribed Image Text:A pharmaceutical company claims 90% success rate of a newly invented drug to treat arthritis pain. To examine the claim, a doctor administered the prescribed dose to 10 arthritis patients. She observed Y, the number of participants for which the drug was effective. A test is defined so as to reject Ho: p = 0.9 in favour of Ha: p < 0.9 by the rejection region {y < k} where k is a positive integer. Note that p is the population proportion of arthritis patients for which the drug was effective. (a) State what is meant by Type I and Type II errors in this context. (b) Find the value of a, the level of the test, if k = 6. (c) For a = 0.05, what should be the value of k if the rejection region of the test is {y <k}? (d) Find the power of the test for p = 0.3, 0.5, 0.7, 0.9. (e) Sketch a graph of the power function against p (0 ≤ p ≤ 1), and comment on how the power changes as p changes. [Hint: You may use Table 1 in Appendix 3 of WMS.]
Expert Solution
Step 1: Determine type I and II error

(As per our standard guidelines, we are supposed to answer only 3 sub-parts.)

a) In hypothesis testing, Type I and Type II errors have specific meanings:

  • Type I Error: In this context, a Type I error would occur if the doctor rejects the null hypothesis H subscript 0 colon p=0.9 (i.e., the drug has a 90% success rate), when in fact it is true. This means that the doctor would conclude that the drug is less effective than claimed when it actually is 90% effective.

  • Type II Error: A Type II error would occur if the doctor fails to reject the null hypothesis H subscript 0 colon p=0.9, when in fact the alternative hypothesis H subscript a colonp < 0.9 is true. In this case, the doctor would conclude that the drug is as effective as claimed (90% success rate), when it is actually less effective.

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