Set up a comparison

- So, let's compare two independent populations…in an effort to figure out if a new drug is effective…in reducing the chance of a heart attack.…In real life, this testing would take many years.…There are several different phases for drug testing…but let's ignore that for now.…Imagine the a drug company gathers…a large number of subjects.…The subjects are randomly placed into two groups.…One group of subjects is given this new drug.…The other group of subjects is given a placebo,…a pill with no medicinal value.…

Suppose, these were the results of this long-term study.…For a new drug group, we had a sample size of 2,219.…26 of those had a heart attack.…So, our p-hat here is 26 divided by 2,219.…For our placebo group, we had a sample size of 2,035.…46 of those people had a heart attack.…So, in this case, our p-hat is 46 divided by 2,035.…

The sample group that took the drug…had heart attacks at a rate of 0.0117 or 1.17%.…The sample group that took the placebo…had heart attacks at a rate of 0.0226 or 2.26%.…Remember, these are just samples.…