A doctor thinks he has found a miraculous cure for rheumatoid arthritis. He thinks it will cure more than 50% of all cases within a year of first taking the drug. To test his drug, he runs a clinical trial on 400 patients with rheumatoid arthritis. He finds that 208 of the patients are symptom free within a year.
A) Specify the null and alternative hypotheses to determine whether the proportion of patients that are cured by the drug exceeds 50%.
B) Calculate the value of the test statistic, and find the p-value at a 5% significance level.
C) At the 5% significance level, can you conclude that the percentage of patients who are cured by the drug exceeds 50%?
Correct Answer:
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