Final answer:
In order to test the claim that 3% of users develop nausea from the drug, a hypothesis test is conducted at a significance level of 0.10. The test statistic is the z-test, and the P-value is calculated to determine whether to reject or fail to reject the null hypothesis.
Step-by-step explanation:
In order to assess the assertion that 3% of users experience nausea from a drug, a hypothesis test will be conducted at a 0.10 significance level, adopting a two-tailed approach.
Assuming the null hypothesis, H0: p = 0.03, and the alternative hypothesis, Ha: p ≠ 0.03, a z-test will be employed as the test statistic.
The z-score is calculated using the formula z = (p - p) / √(p*(1-p)/n).
The resulting z-score follows a standard normal distribution.
The P-value, representing the probability of obtaining a test statistic as extreme than the observed value under the null hypothesis, is then computed.
Decision-making involves comparing the P-value to the significance level (0.10), with the null hypothesis rejected if the P-value is less than the significance level, and retained otherwise.