Question

Suppose the Acme Drug Company develops a new drug, designed to prevent colds. The company states that the drug is equally effective for men and women. To test this claim, they choose a a simple random sample of 100 women and 200 men from a population of 100,000 volunteers. At the end of the study, 38% of the women caught a cold; and 51% of the men caught a cold. Based on these findings, can we reject the company's claim that the drug is equally effective for men and women? Let p1=proportion of all men who catch a cold , after taking the new drug p2=proportion of all women who catch a cold, after taking the new drug

1) Give an estimate of estimate p1-p2.

2) Give an estimate of the standard deviation (standard error) for the distribution of the difference in the two proportions.

3) Give a 95% confidence interval for p1-p2.

Answer 1