SCENARIO 9-12 A Drug Company Is Considering Marketing a New Local Anesthetic.The

question 22

Short Answer

SCENARIO 9-12
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 a 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.The company will market the new local anesthetic as being better if there is evidence that the population mean effective time is greater than the 7.4 minutes of the current local anesthetic.
-Referring to Scenario 9-12,if you select a sample of 25 new local anesthetics and are willing to have a level of significance of 0.01,the probability of the company not marketing the new local anesthetic when its population mean effective time is not greater than the 7.4 minutes is .

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Definitions:

Annuity

A fiscal instrument that provides a consistent flow of income to a person, often employed as a revenue source for those in retirement.

Internal Rate

A term often not complete on its own, likely referring to "Internal Rate of Return (IRR)," which is the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

Present Value Tables

A set of tables that provide the factor needed to calculate the present value of a single payment or series of payments to be received in the future.

Investment

The allocation of resources, usually money, in assets or projects with the expectation of generating income or profit.