The drug OxyContin (oxycodone) is used to treat pain, but it is dangerous because it is addictive and can be lethal. In clinical trials, 291 subjects were treated with OxyContin and 175 of them developed nausea (based on data from Purdue Pharma L.P.). Use a 1% significance level to test the claim that the proportion of OxyContin users that develop nausea is greater than 60%.

Procedure:

Assumptions: (select everything that applies)

Step 1. Hypotheses Set-Up:

 H0:\displaystyle {H}_{{0}}:  = , where is the and the units are
 Ha:\displaystyle {H}_{{a}}:  , and the test is

Step 2. The significance level α=\displaystyle \alpha= %

Step 3. Compute the value of the test statistic: = (Round the answer to 3 decimal places)

Step 4. Testing Procedure: (Round the answers to 3 decimal places)

CVA PVA
Provide the critical value(s) for the Rejection Region: Compute the P-value of the test statistic:
left CV is and right CV is P-value is

Step 5. Decision:

CVA PVA
Is the test statistic in the rejection region? Is the P-value less than the significance level?

Conclusion:

Step 6. Interpretation:

At 1% significance level we have sufficient evidence to reject the null hypothesis in favor of the alternative hypothesis.