A companys old analgesic formula provided relief for 61 of

A company\'s old analgesic formula provided relief for 61 % of the people who used it. The company tests a new formula to see if it is better, and gets a P-value of 0.23. Is it reasonable to conclude that the new formula and the old one are equally effective? Explain. Choose the correct answer below.

Solution

D. Since The p value is greater than 0.5 the new formula is better than before.

If the p-value is less than or equal to the chosen significance level (), the test suggests that the observed data are inconsistent with the null hypothesis, so the null hypothesis must be rejected.

Here p value is greater than 0.5 so we accept Ho i.e the new formula is better