Wondering if the answers I chose are correct and if someone could explain the an

Question

Wondering if the answers I chose are correct and if someone could explain the answers

Developing a new drug can be an expensive process, resulting in high costs to patients. A pharmaceutical company has developed a new drug to reduce cholesterol, and it will conduct a clinical trial to compare the effectiveness to the most widely used current treatment. The results will be analyzed using a hypothesis test. Complete parts (a) and (b) below. If the test yields a low P-value and the researcher rejects the null hypothesis, but it actually is not better, what are the consequences of such a mistake? People will pay less for a drug that is better than the old drug. People will pay more for a drug that is no better than the old drug. The new drug would not be used, so people would avoid paying more for a drug that is no better than the old drug. The new drug would not be used, so people would miss an opportunity for a more effective drug. If the test yields a high P-value and the researcher fails to reject the null hypothesis, but the new drug is more effective, what are the consequences of such a mistake? The new drug would not be used, so people would avoid paying more for a drug that is no better than the old drug. People will pay more for a drug that is no better than the old drug. People will pay less for a drug that is better than the old drug. The new drug would not be used, so people would miss an opportunity for a more effective drug.

Explanation / Answer

a)

That means the new drug is no better than the older drug. Hence, they will release it into the market and will cost more (as it was thought to be more effective), so

OPTION B: People will pay more for a drug that is no better than the old drug. [CONCLUSION]

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b)

That means the drug won't be released, so

OPTION D: The new drug would not be used, so people would miss an opportunity for a more effective drug. [ANSWER]

Yes, you are correct!

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