An Experiment Is Conducted to Test the Hypothesis That Taking

question 18

Short Answer

An experiment is conducted to test the hypothesis that taking gingko supplements increases memory. Participants are randomly assigned to receive gingko or placebo pills for a month and then their memory is tested. If the gingko group's average test score is 3 points higher than the placebo group, can the researchers conclude that the results support the hypothesis? If not, what do the researchers need to do to determine if the results support the results or not?
Module: 2.4

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Definitions:

Fisher Effect

An economic theory that describes the relationship between inflation and both real and nominal interest rates.

Real Rate of Return

The annual percentage profit earned on an investment, adjusted for changes in prices due to inflation or other external effects.

Effective Annual Rate

The interest rate on a loan or investment, adjusted for the effect of compounding over a given period.

Compounded Annual

The process of calculating interest on both the initial principal and the accumulated interest from previous periods on a deposit or loan.