Question

In: Statistics and Probability

A new drug has been developed to treat a particular condition, and it is alleged to...

A new drug has been developed to treat a particular condition, and it is alleged to be more effective than traditional treatment. An experiment will be conducted to test whether the claim is true. To perform the hypothesis test, a 95% confidence level is selected for the hypothesis test. The new drug will be administered to a sample of 200 individuals with the condition, selected at random. Another 300 individuals are randomly selected to receive the traditional treatment.

Of the 200 individuals treated with the new drug, 130 were completely cured. Of those treated with the traditional method, 180 were completely cured.

to. Is there statistical evidence to support the claim that the new drug is more effective? Take the proper test and finish

b. If you were a patient of this condition, which treatment would you select? Justify your answer

Solutions

Expert Solution

a) As we are testing here whether the new drug is more effective, therefore the null and the alternative hypothesis here are given as:

The pooled proportion here is computed as:
P = (130 + 180) / (200 + 300) = 0.62

The standard error here is computed as:

The test statistic here is computed as:

As this is a one tailed test, the p-value here is computed from the standard normal tables as:
p = P(Z > 1.13) = 0.1292

As the p-value here is 0.1292 > 0.05 which is the level of significance here, therefore the test is not significant here and we cannot reject the null hypothesis here. Therefore we dont have sufficient evidence here that the new drug is more effective.

b) If we are a patient we can choose any of the treatment, as there is no evidence here that the new treatment has a higher treatment rate than the traditional one.


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