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Chi square test of independence

The top executives of Company X would like to reduce the blood pressure of hapless employees. They came up with a miracle drug call MiracleOww. Unfortunately, there may be a side effect, abnormal anxiety, associated with the miracle drug. When they carried out a clinical test of the miracle drug, employees were randomly divided into three groups. Group 1 received MiracleOww, Group 2 received a placebo, and Group 3 receive Mavik, a new blood pressure reducing drug currently available. The clinical results are summarized in the following table.

Group 1
MiracleOww
Group 2
Placebo
Group 3
Mavik

Number of employee who
experienced abnormal anxiety

51

5

16

Number of employee who did not
experience abnormal anxiety
1532

152

163

Is there evidence to indicate that the proportion of employees in each group who experienced abnormal anxiety is different at 0.01 significance level?

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Solution Summary

The solution gives the complete details of chi square of independence. Null hypothesis, alternative hypothesis, critical value, test statistic and P value are given with interpretations of the results obtained.

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