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Let’s think again about how to set up an hypothesis test. (a) Given a real-world problem, how do…

Let’s think again about how to set up an hypothesis test. (a) Given a real-world problem, how do…

Let's think again about how to set up an hypothesis test. (a) Given a real-world problem, how do you determine the direction of an hypothesis test? (b) Suppose you are testing a new medical procedure where you have a choice between the two errors: “using the new procedure when it's not really more effective than the old” and “using the old procedure when, in fact, the new procedure is more effective.” Describe a situation for which the second of these errors would probably be considered more crucial than the first. (c) Suppose under the old treatment for a very serious disease the recovery rate is one in 1000. Set up the hypotheses for testing a new treatment to determine if it should be accepted for use. Suppose there is little risk associated with the new treatment.