A manufacturer withdrew Drug V from the market after a study revealed that its use was associated with an increase in the risk of heart attack. The experiment was placebo-controlled, randomized, and double-blind. Out of 1261 people taking Drug V there were 38 heart attacks, and out of 1290 people taking the placebo there were 27 heart attacks. Perform a hypothesis test to test whether those who take Drug V have a greater rate of heart attack than those who take a placebo. Use a level of signifigance of 0.10. Can we conclude that Drug V causes an increased risk of heart attack?
a) Determine the hypothesis for this test?
b) Find the test statistic for this test.
z =
c) Find the p-value for this test.
p-value =
d) What is the conclusion
Reject H0 or Do Not reject H0
e) Can we conclude that Drug V causes an incresed risk of heart attack?