Q. 4.2

Question

Canada has universal health care. The United States does not but often offers more elaborate treatment to patients with access. How do the two systems compare in treating heart attacks? Researchers compared random samples of 2600 U.S. and 400 Canadian heart attack patients. One key outcome was the patients’ own assessment of their quality of life relative to what it had been before the heart attack. Here are the data for the patients who survived a year:

 Quality of life  Canada  United States  Much better 75541 Somewhat better 71498 About the same 96779 Somewhat worse 50282 Much worse 1965 Total 3112165

Is there a significant difference between the two distributions of quality-of-life ratings? Carry out an appropriate test at the α=0.01 level.

Step-by-Step Solution

Verified
Answer

At 0.01 level of significance, there is no significant difference in the distribution of quality of life of heart attack patients in Canada and the U.S.

1Step 1: Given Information

The data on heart attack patient's quality of life in Canada and the United States is given below

 Quality of life  Canada  United States  Much better 75541 Somewhat better 71498 About the same 96779 Somewhat worse 50282 Much worse 1965 Total 3112165

2Step 2: Explanation

The conditions to be met to use a Chi-square test for homogeneity.

- The data should be chosen randomly

- The sample size should be large so that the expected counts are not less than 5.

- There should be independent and the samples can be at most 10% of the population.

 Expected Count = row total  coloumn total * Total 

 Formula used: χ2=( Observed - Expected )2 Expected 

 Degree of freedom =( no. of rows -1)*( no. of columns -1)

The data came from separate random samples of 2600 U.S and 400 Canadian heart attack patients. The sample size is large enough so that the expected counts are greater than 5.

The samples are taken from two different countries, so they are independent and we can safely assume that there will be more than 26000 and 4000 heart patients in U.S and Canada respectively. Hence all conditions are met to carry out the Chi-square test for homogeneity.

Null hypothesis: There is no significant difference in the distribution of quality of life of heart attack patients in Canada and the U.S.

Alternate hypothesis: There is a significant difference in the distribution of quality of life of heart attack patients in Canada and the U.S.

3Step 3: Calculation

The row total and column total of the table is calculated as shown below

 Quality of life  Canada  U.S  Much better 616×3112476=77.37616×21652476=538.63 Somewhat better 569×3112476=71.47569×21652476=497.53 About the same 875×3112476=109.91875×21652476=765.09 Somewhat worse 332×3112476=41.70332×21652476=290.30 Much worse 84×3112476=10.5584×21652476=73.45

The test statistic is calculated as shown below

χ2=( Observed - Expected )2 Expected     =(7577.37)277.37+(7171.47)271.47+(96109.91)2109.91+..+(6573.45)273.45     =11.72548

Degree of freedom =(5-1) *(2-1)                                    =4

The p-value for 4 degrees of freedom and test statistic 11.72 is 0.019476.

The p-value is more than the level of significance, so we have insufficient evidence at 0.01 level of significance to reject the null hypothesis.