Feronetics specializes in the use of gene-splicing techniques to produce new pharmaceutical compounds. It has recently developed a nasal spray containing interferon, which it believes will limit the transmission of the common cold within families. In the general population, 15.1 percent of all individuals will catch a rhinovirus-caused cold once another family member contracts such a cold. The interferon spray was tested on 180 people, one of whose family members subsequently contracted a rhinovirus-caused cold. Only 17 of the test subjects devel- oped similar colds. (a) At a significance level of 0.05, should Feronetics conclude that the new spray effectively reduces transmission of colds? (b) What should it conclude at α = 0.02? (c) On the basis of these results, do you think Feronetics should be allowed to market the new spray? Explain.
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