In a clinical trial, 28 out of 862 patients taking a prescription drug daily complained of flulike symptoms. Suppose that it is known that 2.7% of patients taking competing drugs complain of flulike symptoms. Is there sufficient evidence to conclude that more than 2.7% of this drug's users experience flulike symptoms as a side effect at the alpha = 0.05 level of significance?
Because np0(1 - p0) = 22.6 > 10, the sample size is less than 5% of the population size, and the sample can be reasonably assumed to be random, the requirements for testing the hypothesis are satisfied.
What are the null and alternative hypotheses?
Null: The proportion of drug users experiencing flulike symptoms is equal to 0.027.
Alternative: The proportion of drug users experiencing flulike symptoms is greater than 0.027.