A Pharmaceutical Company Has a Drug They Think Is Better $\mathrm { H } _ { 0 }$

Multiple Choice

A pharmaceutical company has a drug they think is better at lowering blood pressure than the current medication, but it costs more money for consumers. They conduct a significance test on their clinical study ( $\mathrm { H } _ { 0 }$ : The new drug works the same as the old drug, $\mathrm { H } _ { \mathrm { A } }$ : The new drug works better than the old drug.) Which statement about errors is correct?

A) If they fail to reject the null hypothesis, they might be committing a Type I error.
B) A Type I error means people pay more money for a drug that doesn't work better.
C) A Type II error would mean that they did not use randomization in their experiment.
D) A Type I error means people keep using the old drug when a new drug works better.
E) If they reject the null hypothesis, it is possible that they are rejecting a Type II error.