B. Rosiglitazone is the active ingredient in the controversial type2 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.

Below is a graph for 100 simulated results for scenario (b) above.

1. Why are these simulated results centered around 0?

2. Based on this graph, give an estimate of the P-value. Explain or show work.

3. What would you conclude about the relationship between taking Rosiglitazone and having cardiovascular problems in diabetic patients?

(THIS IS ALL THE INFORMATION IN THE PROBLEM)

12 10 8 Count 6 2 0 0.002 -0.001 0.000 0.001 Difference in randomized cardiovascular problem rates (Rosiglitazone - Pioglitazone) 12 10 8 Count 6 2 0 0.002 -0.001 0.000 0.001 Difference in randomized cardiovascular problem rates (Rosiglitazone - Pioglitazone)