All drugs must be approved by the Food and Drug Administration (FDA) before a drug manufacturer can market it. The FDA must weigh the error of allowing an ineffective drug on the market with the risks of side effects versus the consequences of blocking an effectivedrug. Their analysis of a new drug might might well include an hypothesis test for r, where r is the mortality rate under treatment with the new drug. Set up such a test assuming(a) the mortality rate without the new drug is 95%;(b) the mortality rate without the new drug is 5%.
All drugs must be approved by the Food and Drug Administration (FDA) before a drug manufacturer…
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