Question

A study was designed to compare the mortality rate of two drugs – Drug A and Drug B. There were 7720 patients assigned to Drug A and 7780 patients assigned to Drug B (randomly assigned). The mortality rate in Drug A was 5.4% and the mortality rate in drug B was 3.8%. Use to test whether the mortality rates across the two drugs are significantly different.

Round your solution to two significant digits after decimal.

a. Specify the null and alternate hypothesis using appropriate notation. (1 point)

b. Compute the test statistic. (4 points)

c. Compute the p-value based on test statistic obtained in part b. (2 points)

d. Based on the p-value obtained in part c) specify your decision regarding the null hypothesis. (1 point)

e. Interpret the findings based on part d) in the context of this question. (2 point)

Answer 1

Answer:

Given that:

A study was designed to compare the mortality rate of two drugs – Drug A and Drug B. There were 7720 patients assigned to Drug A and 7780 patients assigned to Drug B (randomly assigned). The mortality rate in Drug A was 5.4% and the mortality rate in drug B was 3.8%.

a) Specify the null and alternate hypothesis using appropriate notation.

b) Compute the test statistic

c) Compute the p-value based on test statistic obtained in part b.

p value two tail z test

2* left tail probability

left tail prob in excel is given by

=NORM.S.DIST(-4.756386,TRUE)

= 9.85447E-07

P=2*9.85447E-07

=1.97089E-06

p-value=0.000002

d)  Based on the p-value obtained in part c) specify your decision regarding the null hypothesis

p-value=0.000002

p<alpha

Reject the null hypothesis

e) Interpret the findings based on part d) in the context of this question

There is sufficient statistical evidence at 2 % level of significance to conclude that mortality rates across the two drugs are significantly different