SOLUTION: In a clinical trial, 25 out of 876 patients taking a prescription drug daily complained of flulike symptoms. Suppose that it is known that 2.5% of patients taking competing drugs c

Question 1079142: In a clinical trial, 25 out of 876 patients taking a prescription drug daily complained of flulike symptoms. Suppose that it is known that 2.5% of patients taking competing drugs complain of flulike symptoms. Is there sufficient evidence to conclude that more than 2.5% of this drug's users experience flulike symptoms as a side effect at the alpha equals a=0.05 level of significance?
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
usual hypothesis test
will make it 2-way
test statistic is a z
reject if |z|>1.96
z=(0.0285-0.025)/sqrt (.025*.0975)/876; sqrt term, std error, is 0.00527
=.6635
fail to reject null hypothesis, p=0.50
insufficient evidence to conclude there is a difference.

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