Problem: Side effects Refer to Exercise.

(a) Describe a Type I error and a Type II error in this setting, and explain the consequences of each.

(b) The test has a power of 0.54 to detect that p = 0.07. Explain what this means.

(c) Identify two ways to increase the power in part (b).

Exercise: Side effects A drug manufacturer claims that less than 10% of patients who take its new drug for treating Alzheimer's disease will experience nausea. To test this claim, researchers conduct an experiment. They give the new drug to a random sample of 300 out of 5000 Alzheimer's patients whose families have given informed consent for the patients to participate in the study. In all, 25 of the subjects experience nausea. Use these data to perform a test of the drug manufacturer's claim at the a = 0.05 significance level.