Question

The herb ginkgo biloba is commonly used as a treatment to prevent dementia. In a study of its effectiveness, 1544 elderly subjects were given ginkgo and 1543 elderly subjects were given a placebo. Anong those in the ginkgo group, 250 later developed dementia, and among those in the placebo group, 296 developed dementia. Use a 0.05 significance level to test the claim that ginkgo is effective in preventing dementia. Based on your results, is ginkgo effective in preventing dementia?

*TYPE (including your name) the question on a
separate page and the solution must fill an entire page. No hand
drawn graphs, equations or symbols all must be computer generated
and no liquid paste. Everything can be done in Word. Be sure to
include the null and alternative, significance level, critical
value(s), the test statistic with calculations shown, the properly
drawn graph, decision criteria, decision and one of the four
possible conclusions. Don't forget to anser the question at the end
of the problem.*

Answer #1

Lets take a significance level of 5%.

Which means our critical value would be -1.645.

So reject H0, if tstat<-1.645

Hence as t*<-1.645, we reject H0.

Hence we conclude that there is sufficient evidence to conclude that ginkgo is effective in treating dementia.

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
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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....

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