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A Drug Company Wants to Know Whether the Probability Is α=0.01\alpha=0.01

Question 14

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A drug company wants to know whether the probability is really 0.20 that one of their products will produce side effects. In a random sample of 150 consumers of the product, 42 were victims of side effects. Conduct the two-tailed test. Use α=0.01\alpha=0.01 . State the hypothesis.

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