A researcher wishes to assess the impact of a new medication in decreasing blood glucose levels. The standard success rate for blood glucose medications is 93.7%. Of the 1,000 participants in his study, 948 indicated lowered blood glucose levels as a result of taking the new medication.
Is the new medication more effective in lowering blood glucose levels? Run the appropriate test at the 5% level of significance.
Step 1. Set up hypotheses and determine level of significance
Step 2. Select the appropriate test statistic
Step 3. Set up decision rule
Step 4. Compute the test statistic
Step 5. Conclusion