question archive (One Sample Hypothesis Testing - Large Sample) A drug company is testing a drug intended to increase heart rate
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(One Sample Hypothesis Testing - Large Sample)
A drug company is testing a drug intended to increase heart rate. A sample of 100 yielded a mean increase of 1.4 beats per minute, with a population standard deviation known to be 3.6. Since the company wants to avoid marketing an ineffective drug, it proposes a 0.01 significance level. Should it market the drug? (Hint: If the drug doesn't work, increase will be zero.)