Adoctor believes he found a new drug to significantly reduce cholesterol. he randomly selects 8 people to participate in a study. he measures their cholesterol at the start and then gives them the new drug for 1 month. after one month he measures their cholesterol again. did the drug work? test at the .05 level. (state null hypothesis, state the appropriate test, calculate test statistic (by hand or using excel), and state your conclusion.) before drug after drug 189- 185- 135- 140- 118- 117 159- 157 189 186- 198- 179- 175- 1712 2012 195-

Please find the detailed answer as follows:

Explanation:

Here, we have to use paired t test.

H0: µd = 0 versus Ha: µd > 0

We take difference as before minus after.

Test statistic for paired t test is given as below:

t = (Dbar - µd)/[Sd/sqrt(n)]

From given data, we have

Dbar = 4.2500

Sd = 6.7981

n = 8

df = n – 1 = 7

α = 0.05

t = (4.25 – 0)/[ 6.7981/sqrt(8)]

t = 1.7683

P-value = 0.0602

(by using t-table or excel)

P-value > α = 0.05

So, we do not reject the null hypothesis

There is not sufficient evidence that the new drug significantly reduce the cholesterol level.

month 1 start amount =$3287.90 interest=(3287.90x0.0145/12)3.97 total to pay=$3291.81 paid =$1200 balance =$2,091.87

month 2 starting amount= $2,091.87 interest =$25.28 total to pay =$2117.15 paid =$1200 balance $917.15

month 3 starting amount =$917.15 interest =$11.08 total to pay =$928.23 paid =$928.23 balance =$0 total to pay 1200+1200+928.23 = $3328.23 it will take 3 months to pay a total of $3328.23

answer; dividing net income by 1- t ;