Product effectiveness, A pharmaceutical company's old

Product effectiveness

Reference no: EM131008407

1. Product effectiveness. A pharmaceutical company's old antacid formula provided relief for 70% of the people who used it. The company tests a new formula to see if it is better and gets a P-value of 0.27. Is it reasonable to conclude that the new formula and the old one are equally effective? Explain.

2. Car sales. A German automobile company is counting on selling more cars to the younger market segment-drivers under the age of 20. The company's market researchers survey to investigate whether or not the proportion of today's high school seniors who own their own cars is higher than it was a decade ago. They find a P-value of 0.017. Is it reasonable to conclude that more high school seniors have cars? Explain.

3. False claims? A candy company claims that in a large bag of holiday M&M's® half the candies are red and half the candies are green. You pick candies at random from a bag and discover that of the first 20 you eat, 12 are red.

a) If it were true that half are red and half are green, what is the probability you would have found that at least 12 out of 20 were red?

b) Do you think that half of the M&M's® candies in the bag are really red? Explain.

Reference no: EM131008407

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