In a study of over 1000 coronavirus patients by the National Institute of Allergy and Infectious Diseases showed a death rate of 80 out of 500 patients receiving the new drug, remdesivir, while the death rate for patients receiving the placebo was 116 out of 500. Was there a significant difference between the two groups at the 1% level of significance?
(1) List all the information necessary for conducting the hypothesis test and state which
test you are doing.
(2) State the null and alternative hypotheses and whether you would use a right-tailed
test, a left-tailed test, or a two-tailed test.
(3) Sketch the critical reason, indicating on the sketch what the critical value(s) are.
(4) Determine the calculated z or t.
(6) Decide if you will Reject or Fail to Reject the Null Hypothesis.
(7) Interpret your conclusion in terms of the problem.
(8) If there are any questions to be answered in the problem, do so.
1)
We conduct a z-test for difference of proportions.
2)
The null and alternate hypothesis are:
H0:
Ha:
This is a two tailed test.
3)
The critical values are:
and
4)
The test statistic value is given by:
6)
Since the test statistic lies in the critical region, so we have sufficient evidence to reject null hypothesis H0.
7)
Thus we can conclude that
.
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