A manufacturer withdrew Drug V from the market after a study revealed that its u

Question

A manufacturer withdrew Drug V from the market after a study revealed that its use was associated with an increase in the risk of heart attack. The experiment was placebo-controlled, randomized, and double-blind. Out of 1299 people taking Drug V there were 46 heart attacks, and out of 1276 people taking the placebo, there were 23 heart attacks. Perform a hypothesis test to test whether those who take Drug V have a greater rate of heart attack than those who take a placebo. Use a level of significance of 0.01. Can we conclude that Drug V causes an increased risk of heart attack? Determine the hypotheses for this test. Let p1 represent the population proportion of heart attacks for those who take Drug V and let p2 represent the population proportion of heart attacks for those who take the placebo Choose the correct answer below OA. Ho :P1=P2 Ha P1P2 ? D. Ho:p1=p2 Ha P1 P2 Ha P1P2 ? E. Ho : p1

Explanation / Answer

Data given is as follows:

Sample sizes, n1 = 1299, n2 = 1276

Sample proportions, p1 = 46/1299 = 0.0354, p2 = 23/1276 = 0.018

The hypotheses are:

H0: p1 = p2

Ha: p1 > p2

Next we calculate standard error:

S = (p1*(1-p1)/n1 + p2*(1-p2)/n2)^0.5 = (0.0354*(1-0.0354)/1299 + 0.018*(1-0.018)/1276)^0.5 = 0.0063

Calculate test statistic as follows:

z = (p1-p2)/S = (0.0354-0.018)/0.0063 = 2.762

The p-value for this z-value is:

p = 0.0029

Given significance level, a = 0.01

Since this is a right tailed test, we compare p with a.

Since p < a, we have to reject the null hypothesis H0.

Yes, because the experiment satisfies the cause and effect relationship conditions and because H0 was rejected.

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