Sometimes pains are due to psychological thinking. A placebo is a fake drug that makes you think you are taking a real drug, except that it has no chemical in it. A doctor, who specializes in treating headaches, is wondering whether he should prescribe the new, and costly placebo to help his patients with chronic headache. If he has convincing evidence that more than 25% of the patients feel better when taking this placebo, then he would prescribe it. Otherwise, he would not. To test it, he randomly prescribed it to 50 patients. 14 of them said they feel better. a) Is there some evidence to suggest that the placebo works? Explain. Yes, there is some evidence that the placebo works as out of 50 people selected in the sample more than 25% of the people feel better when taking this placebo. b) Use the Four-Step-Procedure to perform a significant test at alpha value: 0.10. State: We want to perform a significant test with the hypothesis Ho: p=0.25 Нагр>0.25

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I already did problem A and B the 3 problems I need help on is letters C,D, and E

Problem 1: Drugs that help reduce pains always have negative sign effects due to chemicals.
Sometimes pains are due to psychological thinking. A placebo is a fake drug that makes you
think you are taking a real drug, except that it has no chemical in it. A doctor, who specializes in
treating headaches, is wondering whether he should prescribe the new, and costly placebo to
help his patients with chronic headache. If he has convincing evidence that more than 25% of
the patients feel better when taking this placebo, then he would prescribe it. Otherwise, he
would not. To test it, he randomly prescribed it to 50 patients. 14 of them said they feel better.
a) Is there some evidence to suggest that the placebo works? Explain.
Yes, there is some evidence that the placebo works as out of 50 people selected in the sample
more than 25% of the people feel better when taking this placebo.
b) Use the Four-Step-Procedure to perform a significant test at alpha value: 0.10.
State: We want to perform a significant test with the hypothesis
Ho: p=0.25
Нар>0.25
Plan:
Randomization Condition: To test it he randomly prescribed placebo to 50 patients
10% condition: 14 of them said they feel better is less than 10%
Success/Failure Condition:
Success: np=50(0.25)=12.5>10
Failure: n(1-p)=50(0.25)=12.5>10
Do: Z stat=0.49
Conclude: Since the p value is greater than 0.1, we fail to reject the null hypothesis and
conclude that there is no evidence that more than 25% of people feel better when taking this
placebo.
c) Based on the conclusion in part b), should the doctor continue to prescribe this placebo to his
patients? Explain.
d) What type of error did the doctor make in part c)? Explain.
e) What is one consequence for this mistake?
Transcribed Image Text:Problem 1: Drugs that help reduce pains always have negative sign effects due to chemicals. Sometimes pains are due to psychological thinking. A placebo is a fake drug that makes you think you are taking a real drug, except that it has no chemical in it. A doctor, who specializes in treating headaches, is wondering whether he should prescribe the new, and costly placebo to help his patients with chronic headache. If he has convincing evidence that more than 25% of the patients feel better when taking this placebo, then he would prescribe it. Otherwise, he would not. To test it, he randomly prescribed it to 50 patients. 14 of them said they feel better. a) Is there some evidence to suggest that the placebo works? Explain. Yes, there is some evidence that the placebo works as out of 50 people selected in the sample more than 25% of the people feel better when taking this placebo. b) Use the Four-Step-Procedure to perform a significant test at alpha value: 0.10. State: We want to perform a significant test with the hypothesis Ho: p=0.25 Нар>0.25 Plan: Randomization Condition: To test it he randomly prescribed placebo to 50 patients 10% condition: 14 of them said they feel better is less than 10% Success/Failure Condition: Success: np=50(0.25)=12.5>10 Failure: n(1-p)=50(0.25)=12.5>10 Do: Z stat=0.49 Conclude: Since the p value is greater than 0.1, we fail to reject the null hypothesis and conclude that there is no evidence that more than 25% of people feel better when taking this placebo. c) Based on the conclusion in part b), should the doctor continue to prescribe this placebo to his patients? Explain. d) What type of error did the doctor make in part c)? Explain. e) What is one consequence for this mistake?
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