Chapter 16
A consultant tried to attract patients by noting the average complication rate for liver donor surgeries in the US is about 10%, but her clients have had only 3 complications in the 62 liver donor surgeries she has facilitated. She claims this is strong evidence that her work meaningfully contributes to reducing complications (and therefore she should be hired!).
\[ \hat{p} = \frac{3}{62} = 0.048 \]
Claim is that \(\hat{p}\) is less than then national average of 0.1
Type I error: mistakenly reject \(H_0\) when it’s true
Type II error: mistakenly fail to reject \(H_0\) when it’s false
Independent? yes
Large enough sample size? no!
\(n p_0 = 62 \cdot 0.1 = 6.2\)
\(n (1-p_0) = 62 \cdot 0.9 = 55.8\)
What happens if we ignore this?
\[ SE = \sqrt{ \frac{p_0 (1-p_0)}{n}} = \sqrt{\frac{0.1 \cdot 0.9}{62}} = 0.038 \] \[ Z = \frac{\hat{p} - p_0}{SE} = \frac{ 0.048 - 0.1}{0.038} = -1.37 \]
Suppose \(\alpha = 0.1\) (trying to avoid Type II errors)
Since p-value (0.085) is less than \(\alpha\), we do have evidence to reject the null hypothesis.
We think that our consultant’s complication rate is significantly below the national average.
BUT WAIT!
CLT isn’t valid!!
# A tibble: 1 × 1
p_value
<dbl>
1 0.121