Suppose we are planning a clinical trial and expect a 20% success rate in the active group and a 10% success rate in the placebo group. We expect to enroll 100 participants in each group and are interested in the power of the study. (a) Perform a simulation study, and generate 100 participants from a binomial distribution with p = 0.2 and 100 participants from a binomial distribution with p = 0.1. Test to determine whether the observed sample proportion of successes are significantly different, using a two-sided test with a = 0.05.

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Suppose we are planning a clinical trial and expect a 20% success rate in the active group and a 10% success rate in the placebo group. We expect to enroll 100 participants in each group and are interested in the power of the study.

(a) Perform a simulation study, and generate 100 participants from a binomial distribution with p = 0.2 and 100 participants from a binomial distribution with p = 0.1. Test to determine whether the observed sample proportion of successes are significantly different, using a two-sided test with a = 0.05.

(b) Repeat the Problem (a) simulation 1000 times, and compute the proportion of simulations in which a significant difference is found (i.e., an estimate of the power of the study).

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