Question: A multinational pharmaceutical company supplies tablets to a customer. Samples of tablets from each batch are measured in both the producer’s laboratory (A) and the customer’s laboratory (B). The one-hour dissolution rates (%) for the twenty most recent batches gave the following summary statistics:

1. Carry out a t-test on the mean of the differences to assess whether or not there is a relative bias between the laboratories. Calculate a 95% confidence interval to estimate the size of the possible bias. Interpret your results. What is the relationship between the two statistical analyses?
2. If you had not been given the summaries for the differences, you might have based a test for the relative bias and a confidence interval for the long-run difference on the two sets of summaries for the two laboratories. Calculate these and explain why they differ from the results of part (a). Which analysis do you consider more appropriate and why?
3. Explain the following terms: null hypothesis, test statistic, sampling distribution, critical value. Use the example above to illustrate your explanations.

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