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

question 72

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 0.1,the confidence coefficient of the test is _____ if the population mean effective time is 8 minutes.

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Definitions:

Equal Annual Payments

Regular payments of the same amount made annually, often used in loans or annuities.

Equipment Cost

Refers to the total cost incurred to acquire and prepare an item of equipment for its intended use, including the purchase price, shipping fees, installation costs, and any other expenditures necessary to bring the equipment to a functional state.

Future Value

The value of an investment at a specified date in the future, considering factors like interest rates and time.

Present Value

The contemporary valuation of a future quantity of money or cash flow series, assuming a specific interest rate.