Rosiglitazone is the active ingredient in the controversial type 2 diabetes medicine Avandia and has been linked to an increased risk of serious cardiovascular problems such as stroke, heart failure, and death. A common alternative treatment is pioglitazone, the active ingredient in a diabetes medicine called Actos. In a nationwide retrospective observational study of 22,757 Medicare beneficiaries aged 65 years or older, it was found that 259 of the 6,759 patients using rosiglitazone and 539 of the 15,998 using pioglitazone had serious cardiovascular problems. These data are summarized in the contingency table below. Rosiglitazone Pioglitazone Total Cardiovascular problems Yes No 259 6,500 539 15,459 798 a) Write a set of hypotheses comparing the rates for cardiovascular problems for the two treatments. Ho: Pr-Pp 8 HA: P.-PP ? b) Compute the point estimate, the observed difference in rates for cardiovascular problems in the two treatments. Pr-Pp- W Total 6,759 15,998 21,959 22,757 c) Compute the standard error. The standard error is d) Using the point estimate and standard error above, compute the test statistic and two-sided p-value. The test statistic is O The p-value The p-value < .001 (Choose p < .001 for small p-values.)

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Rosiglitazone is the active ingredient in the controversial type 2 diabetes medicine Avandia and has been
linked to an increased risk of serious cardiovascular problems such as stroke, heart failure, and death. A
common alternative treatment is pioglitazone, the active ingredient in a diabetes medicine called Actos. In a
nationwide retrospective observational study of 22,757 Medicare beneficiaries aged 65 years or older, it was
found that 259 of the 6,759 patients using rosiglitazone and 539 of the 15,998 using pioglitazone had serious
cardiovascular problems. These data are summarized in the contingency table below.
Rosiglitazone
Pioglitazone
Total
Cardiovascular problems
Yes
No
259
539
a) Write a set of hypotheses comparing the rates for cardiovascular problems for the two treatments.
Ho: Pr-Pp ? 8
HA: P-Pp? B
Total
6,500
6,759
15,459
15,998
798 21,959 22,757
b) Compute the point estimate, the observed difference in rates for cardiovascular problems in the two
treatments.
Pr-Pp=
c) Compute the standard error.
The standard error is
d) Using the point estimate and standard error above, compute the test statistic and two-sided p-value.
The test statistic is
O The p-value
The p-value < .001
(Choose p < .001 for small p-values.)
Transcribed Image Text:Rosiglitazone is the active ingredient in the controversial type 2 diabetes medicine Avandia and has been linked to an increased risk of serious cardiovascular problems such as stroke, heart failure, and death. A common alternative treatment is pioglitazone, the active ingredient in a diabetes medicine called Actos. In a nationwide retrospective observational study of 22,757 Medicare beneficiaries aged 65 years or older, it was found that 259 of the 6,759 patients using rosiglitazone and 539 of the 15,998 using pioglitazone had serious cardiovascular problems. These data are summarized in the contingency table below. Rosiglitazone Pioglitazone Total Cardiovascular problems Yes No 259 539 a) Write a set of hypotheses comparing the rates for cardiovascular problems for the two treatments. Ho: Pr-Pp ? 8 HA: P-Pp? B Total 6,500 6,759 15,459 15,998 798 21,959 22,757 b) Compute the point estimate, the observed difference in rates for cardiovascular problems in the two treatments. Pr-Pp= c) Compute the standard error. The standard error is d) Using the point estimate and standard error above, compute the test statistic and two-sided p-value. The test statistic is O The p-value The p-value < .001 (Choose p < .001 for small p-values.)
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