A medical research team wishes to evaluate two different treatments for a disease. Subjects are selected two at a time, and one is assigned to Treatment 1 and the other to Treatment 2. The treatments are applied, and each is either a success (S) or a failure (F). The researchers keep track of the total number of successes for each treatment. They plan to continue the experiment until the number of successes for one treatment exceeds the number of successes for the other by 2. For example, based on the results in the accompanying table, the experiment would stop after the sixth pair, because Treatment 1 has two more successes than Treatment 2. The researchers would conclude that Treatment 1 is preferable to Treatment 2.
Suppose that Treatment 1 has a success rate of 0.7 and Treatment 2 has a success rate of 0.4. Use simulation to estimate the probabilities requested in Parts (a) and (b). (Hint: Use a pair of random digits to simulate one pair of subjects. Let the first digit represent Treatment 1 and use 1– 7 as an indication of a success and 8, 9, and 0 to indicate a failure. Let the second digit represent Treatment 2, with 1– 4 representing a success. For example, if the two digits selected to represent a pair were 8 and 3, you would record failure for Treatment 1 and success for Treatment 2. Continue to select pairs, keeping track of the cumulative number of successes for each treatment. Stop the trial as soon as the number of successes for one treatment exceeds that for
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