Rosiglitazone is the active ingredient in the controversial type 2 diabetes medicine Avandia and has been linked to an increased risk of serious cardiovascular problems such as stroke, heart failure, and death. A common alternative treatment is pioglitazone, the active ingredient in a diabetes medicine called Actos. In a nationwide retrospective observational study of 227,571 Medicare beneficiaries aged 65 years or older, it was found that 2,593 of the 67,593 patients using rosiglitazone and 5,386 of the 159,978 using pioglitazone had serious cardiovascular problems. These data are summarized in the contingency table below.

a) Write a set of hypotheses comparing the rates for cardiovascular problems for the two treatments.

b) Compute the observed difference in rates for cardiovascular problems in the two treatments.

c) This study is a suitable candidate for applying a normal distribution. If there really was no difference in the rates of cardiovascular problems and the two drugs under consideration, we can use a normal model with mean 0 and standard error 0.00084. Using this model, compute an appropriate p-value.

The p-value is ????.

Note: WAMAP recognizes E notation. Just use a capital E when entering your answer.

d) Write a suitable conclusion based on your p-value. Use a significance level of alpha = 0.01.

Rosiglitazone Pioglitazone Total Cardiovascular Yes 2,593 5,386 7,979 problems No 65,000 154,592 219,592 Total 67,593 159,978 227,571 Ho: Pr - PP HA: Pr - PP # 16. 0.038 0.034 Pr - P =