Name_____________________________Date________________________________
Learning Activity 4: Module 7
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Nexium is a drug that can be used to reduce the acid produced by the body and heal damage to the
esophagus due to acid reflux. The manufacturer of Nexium claims that more than 94% of patients taking
Nexium are healed within 8 weeks. In clinical trials, 213 of 224 patients suffering from acid reflux disease
were healed after 8 weeks. Test the manufacturer’s claim at the α = 0.01 level of significance. (19 points)
Hypothesis Testing
STEP 1: DETERMINE THE NULL AND ALTERNATIVE HYPOTHESES.
STEP 2: STATE THE LEVEL OF SIGNIFICANCE.
CLASSICAL APPROACH
STEP 3: COMPUTE THE TEST STATISTIC.
P-VALUE APPROACH
STEP 3: COMPUTE THE TEST STATISTIC.
STEP 4: DETERMINE THE CRITICAL VALUE.
STEP 4: DETERMINE THE P-VALUE.
STEP 5: COMPARE THE CRITICAL VALUE AND THE
TEST STATISTIC AND STATE IF THE NULL
HYPOTHESIS IS REJECTED OR NOT REJECTED.
STEP 5: COMPARE THE P-VALUE AND ALPHA,
THEN STATE IF THE NULL HYPOTHESIS IS
REJECTED OR NOT REJECTED.
STEP 6: STATE THE CONCLUSION TO THE
PROBLEM.
STEP 6: STATE THE CONCLUSION TO THE
PROBLEM.
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