Chapter 9, Problem 11PS

Many consumer groups feel that U.S. Food and Drug Administration (FDA) drug approval process is too easy and, as a result, too many drugs are approved that are later found to be unsafe. On the other hand, a number of industry lobbyists have pushed for a more lenient approval process so that pharmaceutical companies can get new drugs approved more easily and quickly. Consider a null hypothesis that a new, unapproved drug is unsafe and an alternative hypothesis that a new, unapproved drug is safe.

a. Explain the risks of committing a Type I or Type II error.

b. Which type of error are the consumer groups trying to avoid? Explain.

c. Which type of error are the industry lobbyists trying to avoid? Explain.

d. How would t be possible to lower the chances of both Type I and Type II errors?