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CFA Level 1
Quantitative Methods

Hypothesis Testing Conclusion based on P-value

Very Hard Hypothesis Testing Null And Alternative Hypotheses

In a recent study examining the effectiveness of a new drug against a placebo, researchers tested the null hypothesis $H_0$: "The new drug has no effect on recovery time compared to the placebo" against the alternative hypothesis $H_a$: "The new drug reduces recovery time compared to the placebo". After analyzing the data with a significance level of $\\alpha = 0.05$, the researchers found a p-value of 0.03. Based on this result, they need to determine the appropriate conclusion regarding their hypotheses.

What conclusion should the researchers draw?

Hint

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