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In each of the following cases, explain which hypothesis should be set up as the

ID: 3183410 • Letter: I

Question

In each of the following cases, explain which hypothesis should be set up as the null and which should be set up as the alternative by deciding which hypothesis, if incorrectly rejected, would result in a more serious error. This is the hypothesis that should be set up as the null. State any assumptions that you make. (a) A chemical compound used as a food additive is a suspected carcinogen. The two hypotheses are: (i) it is safe, (ii) it is not safe in the amount normally consumed. (b) A new analgesic has been developed by a pharmaceutical company. The two hypotheses are: (i) it is effective, (ii) it is not effective. (c) In order for a new generic drug to be approved by the regulatory agency, it must be demonstrated, among other things, that it is biologically equivalent to the original drug. The two hypotheses are: (i) it is bioequivalent, (ii) it is not bioequivalent. (d) It is claimed that cloud seeding is an effective technique to increase precipitation. The two hypotheses are: (i) it is effective, (ii) it is not effective.

Explanation / Answer

Part a

Null hypothesis: H0: It is safe in the amount normally consumed.

Alternative hypothesis: Ha: It is not safe in the amount normally consumed.

We assume that the data is taken from normal or approximate normal distribution.

Part b

Null hypothesis: H0: It is not statistically effective.

Alternative hypothesis: Ha: It is a statistically effective.

We assume normality of data and adequate sample size for reliability of results.

Part c

Null hypothesis: H0: It is bio-equivalent.

Alternative hypothesis: Ha: It is not bio-equivalent.

Part d

Null hypothesis: H0: It is not effective.

Alternative hypothesis: Ha: It is effective.

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