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A Recent Report in Which a Major Pharmaceutical Company Released

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A recent report in which a major pharmaceutical company released the results of testing that had been done on the cholesterol reduction that people could expect if they use the company's new drug indicated that the Type II error probability for a given "true" mean was 0.1250 based on the sample size of n = 64 subjects. Given this, what was the power of the test under these same conditions? The alpha level used in the test was 0.05.


Definitions:

Return on Investment

Return on Investment (ROI) measures the gain or loss generated by an investment relative to the amount of money invested.

Minimised

Reduced to the smallest possible size, amount, degree, or level.

Larger Scheme

A broader or more comprehensive plan or ambition that smaller actions or ideas contribute towards.

Expectancy Theory

A psychological theory proposing that individuals are motivated to act in certain ways based on their expectations of outcomes and the attractiveness of those outcomes.

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