So, I've been reviewing some of my old stats courses in preparation for an interview I have in a couple of days. I'm a bit stuck on a particular question and hope you could help.
A drug trial gives the result that the drug works better than the placebo, with 95% conﬁdence. What exactly does this statement mean? What further assumptions are needed to be able to deduce that the probability of the drug working is actually 95%?
My answer to the first part is... 95% confidence means that there is a 1 in 20 chance that the difference could have been observed by chance i.e. if the experiment was conducted many times.
Any suggestion for part 2?
Thanks in advance.