A pharmaceutical company wants to test whether their the incidence of side effects (i.e. adverse events) differs between the treatment and placebo groups at the α = 0.05. Let p1 = the proportion of subjects in the treatment groups who experienced at least one adverse event and let p2 = the proportion of subjects in the placebo group who experience at least one adverse event. 8 out of 30 people in the treatment group experienced at least one adverse event and 5 out of 30 people in the placebo group experienced at least one adverse event. (d)  Draw a picture of the distribution of the test statistic under H0. Label and provide values for the critical value and the test statistic, and shade the critical region. for the test statistic I got .9401 and for the critical value I did qnorm(.95)=1.6499. (e)  Make and justify a statistical decision at the α = 0.05 level and state your conclusions in the context of the problem. for this question I wrote it would not be more extreme, you would fail to reject the null but I was not sure if this was correct.  (f)  If we increased the sample size to be very large but kept the sample proportion the same how would you expect your decision of this hypothesis test to change?

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A pharmaceutical company wants to test whether their the incidence of side effects (i.e. adverse events) differs between the treatment and placebo groups at the α = 0.05. Let p1 = the proportion of subjects in the treatment groups who experienced at least one adverse event and let p2 = the proportion of subjects in the placebo group who experience at least one adverse event. 8 out of 30 people in the treatment group experienced at least one adverse event and 5 out of 30 people in the placebo group experienced at least one adverse event.

(d)  Draw a picture of the distribution of the test statistic under H0. Label and provide values for the critical value and the test statistic, and shade the critical region. for the test statistic I got .9401 and for the critical value I did qnorm(.95)=1.6499.

(e)  Make and justify a statistical decision at the α = 0.05 level and state your conclusions in the context of the problem. for this question I wrote it would not be more extreme, you would fail to reject the null but I was not sure if this was correct. 

(f)  If we increased the sample size to be very large but kept the sample proportion the same how would you expect your decision of this hypothesis test to change?

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