A pharmaceutical company has developed a new drug to reduce the average choleste

Question

A pharmaceutical company has developed a new drug to reduce the average cholesterol level for patients taking it without the same side effects as other drugs. To test the alternative hypothesis of reduced average cholesterol, 30 patients had their cholesterol levels checked before taking the new drug and then again after taking it regularly. The Excel summary results are shown below. Assuming the data have a normal distribution and using the output below, specify whether each of the following conclusions is correct or incorrect.

You must make a selection for each option. Click once to place a check mark for correct answers and click twice to place an "x" for the wrong answers.

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Hypothesis Test: Paired Observations

At the 5% significance level, we support the claim that the average cholesterol level is lower after taking the new drug than before taking it. At the 1% significance level, we reject the claim that the average cholesterol level is lower after taking the new drug than before taking it. At the 1% significance level, we support the claim that the average cholesterol level is lower after taking the new drug than before taking it. At the 10% significance level, we reject the claim that the average cholesterol level is lower after taking the new drug than before taking it.

Explanation / Answer

given t=3.97

p=0.0002

conclusion:

p<0.01

hence At the 1% significance level, we reject the claim that the average cholesterol level is lower after taking the new drug than before taking it.

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