Page

of 6 Problem 3 A potential side effect does not need to be disclosed on the drug's label if less than 20% of the population experience it. Of the 75 people who took drug A, 12 experienced a dry mouth. a) Does the drug company need to disclose this side effect? Write appropriate hypotheses for this scenario. Remember, it's incumbent on the drug company to prove their product is safe. b) Test at significance level a = 0.05 whether the warning needs to be included on the label. Use prop.test and report your output. ZOOM