SCENARIO 9-4 A Drug Company Is Considering Marketing a New Local Anesthetic.The

question 38

True/False

SCENARIO 9-4
A drug company is considering marketing a new local anesthetic.The effective time of the anesthetic
the drug company is currently producing has a normal distribution with an mean of 7.4 minutes with a
standard deviation of 1.2 minutes.The chemistry of the new anesthetic is such that the effective time
should be normally distributed with the same standard deviation, but the mean effective time may be
lower.If it is lower, the drug company will market the new anesthetic; otherwise, they will continue
to produce the older one.A sample of size 36 results in a sample mean of 7.1.A hypothesis test will
be done to help make the decision.
-True or False: Referring to Scenario 9-4, if the level of significance had been chosen as 0.05,
the null hypothesis would be rejected.

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Definitions:

Agency Terminates

The conclusion or end of an agency relationship between a principal and agent, which can occur through mutual agreement, completion of the task, or by other legal means.

Disclose Information

The act of making information known or revealed, often in a formal or official capacity.

Subjective Test

A method of assessment where outcomes are influenced by the perspectives, interpretations, or judgments of the evaluator.

Agency Relationship

A relationship in which one party (the agent) agrees to act for or on behalf of another party (the principal), typically in business transactions.