Blood Pressure Researchers Developing New Drugs Must Be Concerned About $$\alpha = 0.05$$

question 76

Essay

Blood pressure Researchers developing new drugs must be concerned about possible side
effects. They must check a new medication for arthritis to be sure that it does not cause an
unsafe increase in blood pressure. They measure the blood pressures of a group of 12
subjects, then administer the drug and recheck the blood pressures one hour later. The
drug will be approved for use unless there is evidence that blood pressure has increased an
average of more than 20 points. They will test a hypothesis using $$\alpha = 0.05$$
a. Write appropriate hypotheses (in words and in symbols).
b. In this context, which do you consider to be more serious - a Type I or a Type II error?
Explain briefly.
c. After this experiment produced inconclusive results the researchers decided to test the
drug again another group of patients. Describe two changes they could make in their
experiment to increase the power of their test, and explain the disadvantages of each.

---

Definitions:

Ties up Funds

The process of allocating capital to long-term assets or investments, which restricts its immediate availability for other uses.

Safeguard Assets

Strategies and measures implemented to protect a company's assets from theft, damage, or misuse.

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a period, indicating the efficiency in managing stock levels.

Number of Days' Sales

A financial metric that measures how quickly a company can convert its inventory into sales.