Scientists at a pharmaceutical company want to compare their new drug to an existing one. Let's call the new drug A and the old drug B. In a random sample of 120 subjects who took drug A, 40% developed severe side effects. Whereas, in a random sample of 100 subjects who took drug B, 45% developed severe side effects. These scientists are interested to see if there is significant evidence that their new drug reduces severe side effects in patients the significance level.
Make and justify a statistical decision at the significance level and state your conclusion in the context of the problem.
Group of answer choices
Since the test statistic IS more extreme than the critical value (), we REJECT the null hypothesis at the level. There IS statistically significant evidence that the new drug reduces severe side effects.
Since the test statistic IS more extreme than the critical value (), we FAIL TO REJECT the null hypothesis at the level. There IS NOT statistically significant evidence that the new drug reduces severe side effects.
Since the test statistic IS NOT more extreme than the critical value (), we FAIL TO REJECT the null hypothesis at the level. There IS NOT statistically significant evidence that the new drug reduces severe side effects.
Since the test statistic IS NOT more extreme than the critical value (), we REJECT the null hypothesis at the level. There IS statistically significant evidence that the new drug reduces severe side effects.