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 a = 0.05. Let pı = 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. (a) Set up the null and alternative hypothesis (using mathematical notation/numbers AND interpret them in context of the problem) (b) Calculate the test statistic (c) Calculate the critical value

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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 a = 0.05. Let pı = 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.
(a) Set up the null and alternative hypothesis (using mathematical notation/numbers AND interpret
them in context of the problem)
(b) Calculate the test statistic
(c) Calculate the critical value
(d) Draw a picture of the distribution of the test statistic under Ho. Label and provide values for the
critical value and the test statistic, and shade the critical region.
(e) Make and justify a statistical decision at the a = 0.05 level and state your conclusions in the context
of the problem.
(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?
Transcribed Image Text: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 a = 0.05. Let pı = 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. (a) Set up the null and alternative hypothesis (using mathematical notation/numbers AND interpret them in context of the problem) (b) Calculate the test statistic (c) Calculate the critical value (d) Draw a picture of the distribution of the test statistic under Ho. Label and provide values for the critical value and the test statistic, and shade the critical region. (e) Make and justify a statistical decision at the a = 0.05 level and state your conclusions in the context of the problem. (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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