GE1707

Instructions: Perform what is being asked. (30 points)

1. The side effects of a new drug are being tested against a placebo. A simple random sample of 565 patients
yields the results below. At a significance level of 𝛼 = 0.10, is there enough evidence to conclude that the
treatment is independent of the side effect of nausea?

Result Drug Placebo Total

Nausea 36 13 49

No nausea 254 262 516

Total 290 275 565

a. The null hypothesis 𝐻0: the treatment and response are independent. (2 points)
b. The alternative hypothesis 𝐻𝑎: the treatment and response are dependent. (2 points)
c. The level of significance α = 0.01 (2 points)
d. The degrees of freedom: (number of rows - 1)×(number of columns - 1) = (2 − 1) × (2 − 1) = 1
× 1 = 1. (2 points)

e. The test statistic: (4 items x 4 points)

f. The critical value: the critical value is 2.706. (2 points)
g. Decision: Since χ2 ≈ 10.53 > 2.706, there is enough statistical evidence to reject the null
hypothesis and to believe that there is a relationship between the treatment and response. (4
points)
04 Task Performance 1 *Property of STI
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