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In order to determine whether or not a particular medication was effective in curing the common...

In order to determine whether or not a particular medication was effective in curing the common cold, one group of patients was given the medication, while another group received sugar pills. The results of the study are shown below.

Patients Cured Patients Not Cured

Received Medication 70 10

Received Sugar 20 50

We are interested in determining whether or not the medication was effective in curing the common cold. (i) Compute the sample proportion of patients that was cured by the medication and the proportion of patients that was cured by sugar pills (ii) Test the Hypothesis that H0:p1-p2 =0 against Ha: p1-p2 do not equal 0 at 5% label of significance

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