Describe an appropriate null hypothesis

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A drug company is testing a drug intended to increase heart rate. A sample of 100 yielded a mean increase of 1.4 beats per minute, with a population standard deviation known to be 3.6. Since the company wants to avoid marketing an ineffective drug, it proposes a 0.001 significance level. Should it market the drug? (Hint: If the drug doesn't work, the increase will be zero.)

(a) Describe an appropriate null hypothesis, alternative hypothesis.

(b) Calculate the test statistic and P-value

(c) What are your conclusions? Should the company market the drug? Explain your reasoning.

Reference no: EM132195985

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