Question

The herb ginkgo biloba is commonly used as a treatment to prevent dementia. In a study of the effectiveness of this treatment, 1545 elderly subjects were given ginkgo and 1524 elderly subjects were given a placebo. Among those in the ginkgo treatment group, 246 later developed dementia, and among those in the placebo group, 277 later developed dementia (based on data from “Ginkgo Biloba for Prevention of Dementia,” by DeKosky et al., Journal of American Medical Association, Vol. 300, No. 19). We want to use a 0.01 significance level to test the claim that ginkgo is effective in preventing dementia. Identify the test statistic, equation- p value or critical value, conclusion about the null hypothesis, and final conclusion that addresses the original claim.

Answer 1