A Pharmaceutical Company Has a Drug They Think Is Better

question 19

Multiple Choice

A pharmaceutical company has a drug they think is better at lowering blood pressure than the current medication, but it costs more money for consumers. They conduct a significance test on their clinical study (H₀: The new drug works the same as the old drug, Ha: The new drug works better than the old drug.) Which statement about errors is correct?

• A) A Type I error means people pay more money for a drug that doesn't work better.
• B) If they reject the null hypothesis, it is possible that they are rejecting a Type II error.
• C) A Type I error means people keep using the old drug when a new drug works better.
• D) If they fail to reject the null hypothesis, they might be committing a Type I error.
• E) A Type II error would mean that they did not use randomization in their experiment.

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Definitions:

Needs Analysis Process

A systematic approach to identifying gaps between current conditions and desired states or outcomes.

Stakeholder

Any individual or group that has an interest or concern in an organization's activities and outcomes.

Training Transfer Climate

The organizational environment and culture that either facilitates or hinders the application of learned skills and knowledge from training to the job.

Conflict Resolution Skills

The abilities necessary to effectively manage and resolve disagreements or disputes between parties.