From the course: Statistics Foundations 4: Advanced Topics

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Two population: Hypothesis test example

Two population: Hypothesis test example

- A company is trying to figure out if a new drug is effective in reducing the chance of a heart attack. The company gathers a large number of test subjects. The subjects are randomly placed into two groups. One group took the new drug. The other group took the placebo. The placebo group had heart attacks at a rate of 0.0226 or 2.26%. The new drug group had heart attacks at a rate of 0.0117 or 1.17%. These results, as well as the confidence intervals we created in a previous video, provide evidence that the new drug did help reduce the rate of heart attacks. But here's the question. Is it possible that this was all just the result of chance? Was this just a lucky outcome? In other words, we had 4,254 people in the study. 72 of those people suffered a heart attack. What's the probability that even without the new drug or placebo, these same people would've suffered heart attacks. Perhaps these 4,254 people were…

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