A Pharmaceutical Company Wishes to Study a Possible New Headache

question 14

Multiple Choice

A pharmaceutical company wishes to study a possible new headache medicine. They are doing human trials with 1000 volunteers and need to ______________

• A) give both control and experimental groups the same amount of the new medication
• B) have 10 volunteers in the control group
• C) control for the type of headachestress, migraine, or other causes
• D) put all women in the control group and all men in the experimental group
• E) divide the groups by level of health

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Definitions:

Opportunity Cost

Opportunity cost represents the benefits an individual, investor, or business misses out on when choosing one alternative over another.

Cash Flow Operations

The net amount of cash and cash-equivalents being transferred into and out of a business, specifically from its operational activities.

Tax Shield Approach

A method used in finance to reduce taxable income by properly deducting expenses like mortgage interest, which decreases overall taxes owed.

Operating Cash Flows

The amount of cash generated by a company's regular business operations.