Question

3. 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 (not including the drug). Among those in the ginkgo treatment group, 246 later developed dementia, and among those in the placebo group, 277 later developed dementia. We want to use a 0.01 significance level to test the claim that ginkgo is effective in preventing dementia. Test this claim using the critical value method. (10 points) a. Formal hypotheses b. Critical value(s) c. Test statistic d. State your conclusion in nontechnical language

Answer 1