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A psychiatrist is interested in determining if the condition of individuals who are clinically depressed improves with either 20 or 40 milligrams of Prozac. She administers 20 milligrams to a random half of her clients and 40 milligrams to the other half. She finds that, after six months, the clients who took 40 milligrams of Prozac are significantly less depressed than those clients who took 20 milligrams of Prozac. Which type of study did the psychiatrist conduct?
IRR
Internal Rate of Return; a financial metric used to estimate the profitability of potential investments, calculating an annual growth rate.
Profitability Index
A fiscal indicator that evaluates an investment's comparative profitability by calculating the ratio of the present value of future cash inflows to the upfront cost of the investment.
Present Value
The immediate worth of a future financial amount or sequences of cash flows, using a specified rate of return for calculation.
Invested Costs
Costs that have already been incurred for a project or investment.
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