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Use the following to answer questions :
Scenario I
The scenario is based on and presents fabricated data consistent with the following study:
Merikle,P.M. ,& Skanes,H.E.(1992) .Subliminal self-help audiotapes: A search for placebo effects.Journal of Applied Psychology,77(5) ,772-776.doi:10.1037/0021-9010.77.5.772
Merikle and Skanes (1992) investigated the effectiveness of subliminal self-help audiotapes to promote weight loss in overweight females seeking to lose weight.Participants were randomly assigned to groups.Participants in two groups were instructed to listen to audiotapes containing subliminal messages associated with weight loss daily.Group 1 (the subliminal group) actually received these tapes.Group 2 (the placebo group) received tapes containing subliminal messages associated with relieving dental anxiety.Finally,a third group of participants was not given audiotapes and was told that they were on a waiting list to participate in the study.All participants-including the participants on the waiting list-were weighed weekly for 5 weeks.The average total weight loss (and standard deviations) for the three groups after the fifth week is presented in Figure 5.1.
Figure 5.1
-(Scenario I) Suppose that a company markets a subliminal audiotape designed for people wanting to lose weight.As evidence that the product is effective,it cites a study based on 500 randomly selected overweight participants demonstrating that people who listened to the tapes for 10 weeks lost-on average-6 pounds.Which statement is NOT a reason to be sceptical of these claims?
Paid-in Capital
The amount of money that a company receives from issuing shares of stock, recorded in the shareholders' equity section of the balance sheet.
Scrip Dividend
A method of paying dividends in the form of additional shares instead of cash.
Earnings Per Share
A financial ratio that measures the portion of a company's profit allocated to each outstanding share of common stock.
Declaration Date
The specific day on which a company’s board of directors announces its intent to pay a dividend to shareholders.
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