From the course: Statistics Foundations 4: Advanced Topics

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Two population: Confidence interval example

Two population: Confidence interval example

From the course: Statistics Foundations 4: Advanced Topics

Two population: Confidence interval example

- So let's compare two independent populations. Those two populations will help us figure out if a new drug is effective in reducing the chances of people getting a heart attack. These tests often require many years and many phases of testing. But for this example, we'll just look at one phase of testing. Let's imagine a drug company gathers a large number of subjects. These subjects are randomly placed into two groups. Group one is given a placebo, a pill with no medicinal value. Group two is given the new drug. Each member of each group takes their assigned pill every day for three years. Here are the results of this long-term study. The placebo group had a sample size of 2,035 test subjects. 46 of those people had a heart attack. So to find our p-hat-- Remember, p-hat is the proportion of our sample. So to find our p-hat for the placebo group, we divide 46 by 2,035. The new drug group had a sample size of 2,219…

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