Suppose that ${}^2=100$ and from $100$ samples, we have $\stackrel{}{x}=13.$ The new drug cannot be licensed if it is worse than the existing drug. Which of the followings is true? The new drug will be licensed under both $5\%$ and $1\%$ tests. The new drug will be licensed under neither a $5\%$ nor a $1\%$ test. The new drug will be licensed under a $5\%$ test, but not under a $1\%$ test. Correct Answer: $$ The new drug will be licensed under a $1\%$ test, but not under a $5\%$ test. The new drug will be licensed under a $1\%$ test, but not under a $5\%$ test.