CFA Level 1
Quantitative Methods

Null and Alternative Hypotheses in Drug Effectiveness

Hard Hypothesis Testing Null And Alternative Hypotheses

In a study analyzing the effectiveness of a new drug on reducing blood pressure, researchers formulated two hypotheses:

1. Null Hypothesis ($H_0$): The new drug has no effect on blood pressure, i.e., the population mean blood pressure (after treatment) is equal to the population mean blood pressure (before treatment).

2. Alternative Hypothesis ($H_1$): The new drug reduces blood pressure, i.e., the population mean blood pressure (after treatment) is less than the population mean blood pressure (before treatment).

If researchers collected a sample and found strong evidence to reject the null hypothesis, which of the following conclusions is most valid?

Hint

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