Suppose a hospital uses large quantities of packaged doses of a particular drug.

The individual dose of this drug is 100 cubic centimeters (100 cc). The action of
the drug is such that the body will harmlessly pass off excessive doses but
insufficient dose will not produce the desired medical effect. The hospital is also
concerned about the accurate chemical composition in each dose. If the chemical
composition is not correct, it could lead to undesirable side effects. The hospital
purchases the drug from a manufacturer and inspects 28 doses. The data is as
follows:

Dose Desired chemical

S.No. quantity (in composition per
cc) dose
Average
1 99.2 1
2 99.7 1
3 100.2 1
4 99.4 1
5 100.1 0
6 100 1
7 100 1
8 99.9 0 count of 1 22
9 100.2 1
10 101 1
11 100 1
12 99.7 1
13 100.3 1
14 100.4 1
15 100 1
16 100.5 1
17 99.6 1
18 99.5 0
19 99.8 1
20 99.4 1
21 100 1
22 99.4 0
23 99.9 1
24 100.2 1
25 100.3 0
26 100 0
27 99.9 1
28 99.5 1
(desired chemical composition: 1-Yes, 0-No)
Q 1. What is the point estimate for Average quantity and proportion of defects respectively? (1 Mark)
Average Quantity 99.932142857143 Point Estimate
Proportion of defects 0.2142857142857

Q 2. Construct an interval estimate for the average dosage quantity at 95% confidence interval. (3 marks)

n 28
s 0.395393448
std error 0.074722338
Df 27

alpha 0.05
T value 2.051830516

marginal er 0.153317574
x bar 99.93214286

Upper Limi100.0854604
Lower Lim 99.77882528

Q 3. Is it reasonable to conclude at the 5% significance level that the average dosage quantity is significantly les

Ho Mu>=100
Hi Mu<100

Sample Stat-0.90812392
P value 0.185923761

Pvalue>alpha
We do not reject Null Hypothesis
The dosage quatity is not less than 100

Q 4. The hospital will reject the shipment if the proportion of chemical composition accuracy is significantly dif

p 0.9 Ho p>=0.9
p bar 0.785714286 Hi p<0.9
q bar 0.214285714
n 28

std error 0.077544307

 Sample Stat -1.4738118

Pvalue 0.076048394

alpha 0.1

P value is less than alpha

We reject the null hypothesis
i.e. the hospital should not keep the shipment

Q 5. As managing director of the hospital, what confidence interval you might have chosen to assess the: (
(i) average dosage
proportion of chemical composition
(ii)
accuracy
Will you choose a higher confidence level for (i) or (ii)? Give reasonable justification for your choice.

As the manager I will choose higher confidence interval for proportion of chemical composition, becauseif the chem
The confidence interval for average dosage is lower because even if the average is lower than 100, it does not have
>100 =100 <100
no -ve effect no -ve effect -ve effect

p bar 0.785714286
vely? (1 Mark)

interval. (3 marks)

uantity is significantly less than 100? (3 marks)

curacy is significantly different from 0.9. At 10% significance level, should the hospital keep the shipment?
osen to assess the: (5 marks)
95%
99%
tion for your choice.

position, becauseif the chemical composition is incorerct, it has adverse effects.

r than 100, it does not have side effects.
shipment? (3 marks)