DNT Company currently sells a prescription reliever that has been shown to be effective in reducing joint pain. However, this medication also causes stomach irritation in some patients. In order to address this side effect, the company has created a new formulation that they hope will reduce stomach irritation for users of the pain reliever. To test the effectiveness of this new formulation, the company conducted a preliminary study.
The study involved combining the new formulation with the current pain reliever. A total of 100 subjects with arthritis participated in the study, with 50 randomly assigned to take the current pain reliever and 50 randomly assigned to take the new formulation. Patient responses at the end of the study are summarized in the table below:
Patient Response Current Pain Reliever New Formulation
Stomach Irritation 20 10
No Stomach Irritation 30 40
Do the data from the preliminary study indicate, at the 10 percent level of significance, that the new formulation helps to reduce the proportion of patients with stomach irritation compared to the current pain reliever? (The conditions for inference have been checked and verified.) Based on your conclusion, what type of error is possible? Describe both errors and consequences of each error in the context of this study.