A drug claims to cure patients in 80% of all cases. A sample of 10 patients was taken, 5 got cured, 5 not. I need to decide if the manufacturer should change their claim. Assume 5% to be the significance level.
- : p = 0.8
- : p < 0.8
So, my approach:
1. sample size = 10, p = 0.5, std dev = 0.25
2. calculate the z-value for the sample:
3. here, I am not sure how to calculate . I am considering two formulas:
-
-
4. check the z-value to be less than , if so, reject
Is it makes sense?