What is the probability that the claim will be rejected

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A drug manufacturer claims that a certain drug cures a blood disease, on the average, 80% of the time. To check the claim, government testers used the drug on a sample of 100 individuals and decided to accept the claim if 75 or more were 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: EM13576842

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