A pharmaceutical company is testing a new drug for a rare disease. In a clinical trial, 1000 patients with the disease were randomly assigned to receive either the new drug or a placebo. After one year, it was found that 60% of the patients who received the new drug experienced improvement, compared to only 40% of those who received the placebo. Is the difference in improvement rates statistically significant? Provide your rationale.

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
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A pharmaceutical company is testing a new drug for a rare disease. In a clinical trial, 1000 patients
with the disease were randomly assigned to receive either the new drug or a placebo. After one
year, it was found that 60% of the patients who received the new drug experienced improvement,
compared to only 40% of those who received the placebo. Is the difference in improvement rates
statistically significant? Provide your rationale.
Transcribed Image Text:A pharmaceutical company is testing a new drug for a rare disease. In a clinical trial, 1000 patients with the disease were randomly assigned to receive either the new drug or a placebo. After one year, it was found that 60% of the patients who received the new drug experienced improvement, compared to only 40% of those who received the placebo. Is the difference in improvement rates statistically significant? Provide your rationale.
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