Problem 5. A drug company is testing a drug intended to increase heart rate. A sample of 120 test subjects yielded a mean increase of 1.4 beats per minute, with a population standard deviation, sigma, of 3.6. Since the company wants to avoid marketing an ineffective drug, it proposes a 0.01 significance level. Should it market the drug? (Hint: If the drug is ineffective, the increase will be zero.)

1. Describe an appropriate null hypothesis, alternative hypothesis.

Ho:

Ha:

1. Calculate the test statistic

Test Statistic:

1. Calculate the P-value

P-value:

1. What are your conclusions? Should the company market the drug? Explain your reasoning.

[Insert Conclusion and reasoning]