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Probability that the claim will be rejected

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Reference no: EM131042105

A drug manufacturer claims that a certain drug cures a blooddiseaseon the average 80% of the time. To check the claim, government testers used the drug on a sample of 100 individuals& decidedto accept the claim if 75 or more are cured.

(a) What is the probability that the claim will be rejected when the cure probability is, in fact 0.8?

(b) What is the probability that the claim will be accepted by the government when the cure probability is as low as 0.7?

Reference no: EM131042105

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