State the appropriate hypotheses


Problem:

Does lovastatin (a cholesterol-lowering drug) reduce the risk of heart attack? In a Texas study, researchers gave lovastatin to 2,325 people and an inactive substitute to 2,081 people (average age 58). After 5 years, 57 of the lovastatin group had suffered a heart attack, compared with 97 for the inactive pill.

(a) State the appropriate hypotheses.

(b) Obtain a test statistic and p-value. Interpret the results at α = .01.

(c) Is normality assured?

(d) Is the difference large enough to be important?

(e) What else would medical researchers need to know before prescribing this drug widely?

(Data are from Science News 153 [May 30, 1998], p. 343.)

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Accounting Basics: State the appropriate hypotheses
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