Originating drug companies invent medications and give each drug 2 names, the brand name and the generic name. The brand name is simply what the manufacturer calls the product and the generic name represents the chemical compound of the drug. It takes many years, at least 20, before a drug can be manufactured as a generic; this is due to the patents that are put on the new medications.
While researching it is found that he volume of generic prescriptions, both new and refilled, as found to be over 41% in 1999. A sample has been conducted by running a report of all medications filled in one day, comprised of new and refilled prescriptions, at Foodtown Pharmacy in Lambertville, Michigan. The sample was taken from 301 prescriptions filled, of which 101 were filled with generic medication; the sample was conducted on January 27, 2003. With this information we can conclude whether or not 41% or more of prescriptions in the sample area are filled with generic medications in 2003.
Variables n = 307 = = 0.329 a = 0.05 po = 0.41 Step 1: Null and Alternative Hypothesis The null hypothesis is the tested sample proportion being equal or less than 41%. The alternative hypothesis is our sample proportion being greater than 41%. A one-tail test must be used in order to conclude whether or not more than 40% of prescriptions are filled with generic medication.
Ho : p Ã¢ÂÂ¤ 0.41 Ha : p > 0.41 Step 2: Test Statistic The population proportion test statistic must be used due to the statistic that has been selected to test, because it is a percentage. We therefore use the following equation to compute the Z-value: = The following is a bell curve that describes the data that has just been calculated: a...