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So; z tab = 1.65 2.13 ⥠1.65 Step 6: Conclusion The above calculation shows us that 2.13 are in the rejection region. Therefore we will reject H0. Q2: Suppose the previous example is stated a little bit differently. Suppose the Acme Drug Company develops a new drug, designed to prevent colds. The company states that the drug is more effective for women than for men. To test this claim, they choose a simple random sample of 100 women and 200 men from a population of 100,000 volunteers. Step 1: Specification of hypothesis H0: p1 = p2 Lower Tail H1: p1 < p2 Step 2: Level of Significance α= 0.01 (5 %) Step 3: Test Statistics pÌ 1 â pÌ 2 z= p (1âpÌ (1 ð 1 + 1 ð 2 ) Step 4: Calculation p = [p1 (n1) + p2 (n2)] / (n1 + n2) p = [(0.38 Ã100) + (0.51 à 200)] / (100 + 200) p = 140/300 p = 0.467 INFERENTIAL STATISTICS 97 HYPOTHESIS TESTING