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91Ó°ÊÓ

For each situation described, indicate whether it makes more sense to use a relatively large significance level (such as \(\alpha=0.10\) ) or a relatively small significance level (such as \(\alpha=0.01\) ). Testing a new drug with potentially dangerous side effects to see if it is significantly better than the drug currently in use. If it is found to be more effective, it will be prescribed to millions of people.

Short Answer

Expert verified
It is more appropriate to use a relatively small significance level, such as \(\alpha = 0.01\), to minimize the risk of falsely declaring the new drug as more effective.

Step by step solution

01

Understanding the context

In this situation, we are testing a new drug with potentially dangerous side effects to know if it is significantly better than the currently used drug. If we find it more effective, it will be prescribed to millions of people.
02

Interpreting significance level

A significance level (\(\alpha\)) is the probability of rejecting the null hypothesis when it is actually true. Therefore, a larger \(\alpha\) means a greater chance of wrongly rejecting the null hypothesis (Type I error). In the context of this experiment, it would mean a greater chance of concluding that the new drug is more effective when it actually isn't.
03

Conclusion

Considering the stakes, including dangerous side effects and the drug potentially being prescribed to millions of people, a Type I error could have serious consequences. Consequently, it is better to use a relatively small \(\alpha\) (such as \(\alpha = 0.01\)). The lower \(\alpha\) reduces the chance of falsely concluding that the new drug is more effective, therefore minimizing the risk of prescribing an ineffective or potentially harmful drug to millions of people.

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Key Concepts

These are the key concepts you need to understand to accurately answer the question.

Type I Error
In hypothesis testing, a Type I error occurs when we reject a true null hypothesis. This means we believe our alternative idea or theory is correct, even if it's not. It's like saying a new treatment works better than an old one, when in reality, it doesn’t. This can create serious issues, especially in fields like medicine.
  • A Type I error can lead to wrong decisions being made.
  • Choosing a smaller significance level (\( \alpha \)) can help minimize this risk.
If our goal is to ensure public safety, like when testing a drug, we must be cautious about making Type I errors. Using a lower \( \alpha \), such as 0.01, helps reduce the likelihood of making this mistake, ensuring more confidence in our test results.
Drug Testing
When testing a new drug, scientists must determine if it outperforms existing treatments without causing serious side effects. This is a critical decision-making process which can affect many people.
  • Drugs must be both effective and safe for widespread use.
  • Researchers examine whether new treatments work better than old ones.
To do this effectively, clear and reliable evidence is needed. In the case of a drug that might have dangerous side effects, testing requires careful consideration to avoid Type I errors. Using a more stringent significance level like 0.01 ensures that any claim about the drug's effectiveness is backed by solid evidence. This reduces the risk of endorsing a faulty medication.
Hypothesis Testing
Hypothesis testing is a process used to decide if there is enough evidence to reject a given assumption or null hypothesis about a population parameter. It's a step-by-step procedure that helps researchers prove or disprove theories.
  • First, a null hypothesis assumes no effect or difference exists.
  • The alternative hypothesis suggests a significant effect or difference.
The significance level (\( \alpha \)) is central to hypothesis testing. It sets the threshold for how confident we must be to reject the null hypothesis. A smaller \( \alpha \) indicates stronger evidence is needed to make a claim against the null hypothesis. For something critical, like drug testing with potential health impacts, setting a lower \( \alpha \) is necessary. This precaution helps avoid claiming benefits of a new drug when it's not justified, thereby protecting public health.

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Most popular questions from this chapter

Using the definition of a p-value, explain why the area in the tail of a randomization distribution is used to compute a p-value.

A situation is described for a statistical test. In each case, define the relevant parameter(s) and state the null and alternative hypotheses. Testing to see if there is evidence that a correlation between height and salary is significant (that is, different than zero ).

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