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using hypothesis tests
We still need to find a test statistic we can use in our hypothesis test, and
as the number in the sample is large, this means that using the binomial
distribution will be time consuming and complicated.
There are 100 people in the sample, and the proportion of successes
according to the drug company is 0.9. In other words, the number of
successes follows a binomial distribution, where n = 100 and p = 0.9.
As n is large, and both np and nq are greater than 5, we can use
X ~ N(np, npq) as our test statistic, where X is the number of patients
successfully cured. In other words, we can use
X ~ N(90, 9)
to approximate any probabilities that we may need.
If we standardize this, we get
This means that for our test statistic we can use
Z = X - 90
Z ~ N(0, 1)
3
Here we’re standardizing
X ~ N(90, 9).
I get it. So our test
statistic is the variable
we use for our test.
You use the test statistic to work out probabilities
you can use as evidence.
This means that we use Z as our test statistic, as we can easily use it to
look up probabilities and see how unlikely the results of our sample
are given the claims of the drug company. We substitute our value of
80 in place of X, so we can use it to find the probability of 80 or fewer
being cured.
Use the normal to approximate the binomial in our test statistic
Z = X - 90
9
= X - 90
3
We can use this because n is
large, np > 5 and nq is large.
X is the number of patients
cured, in our case 80.