A pharmaceutical company reports that in testing whether their new cancer drug i

Question

A pharmaceutical company reports that in testing whether their new cancer drug increases the mean survival time for certain types of cancer patients, their results were statistically significant. Suppose that in testing Upper H 0 H0: mu equals =100 versus Ha: mu greater than >100 they obtain x overbar x equals =101 and s equals =5 for a random sample of 400 patients. Find the test statistic and discuss the practical significance of the test. A. t equals = minus 4; although the test is statistically significant, the increase of 1 day is not practically significant B. t equals =4; since the P-value is less than 0.05, the test is practically significant C. t equals = minus 4; since the P-value is less than 0.05, the test is practically significant D. t equals =4; although the test is statistically significant, the increase of 1 day is not practically significant

Explanation / Answer

here std error of mean =std deviation/(n)1/2 =5/(400)1/2 =0.25

therefore test stat t =(X-mean)/std error =(101-100)/0.25 =4

hence correct option is : D

t equals =4; although the test is statistically significant, the increase of 1 day is not practically significant

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