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?

a. The null hypothesis: The treatment and response are independent (not related)

b. The alternative hypothesis: Both treatment and response are dependent (related)

c. The level of significance: 0.01

d. The degrees of freedom: (number of rows – 1) × (number of columns – 1) = (2 – 1) × (2 – 1)

= 1 × 1 = 1.

e. The test statistic: A table could be used to calculate

Row Column E O O-E (O-E) (O-E)2

2 E
1,1 49x290 = 25.15 36 10.85 117.72 4.681
565
1,2 49x275 = 23.85 13 -10.85 117.72 4.936
565
2,1 516x290 = 254 -10.85 117.72 0.444
264.85
565
2,2 516x245 = 262 10.85 117.72 0.496
251.15
565

x2 = (observed – expected)2 = (O – E)2 = “10.53”

expected E

f. The critical value: from a = 0.10 and d. f = 1 and the critical value is “2.706”

g. Decision: there is enough evidence to reject the null hypothesis and there is a correlation on the response
and treatment

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