A Team of Psychologists Designed a Study in Which 12

question 10

Essay

A team of psychologists designed a study in which 12 psychiatric patients diagnosed as having generalized anxiety disorder were randomly assigned to one of three new types of therapy, here labeled X, Y, and Z. One year after therapy, the patients' overall mental health scores were as follows:
Do these results suggest that the different therapies have different effects on mental health?
(Use the .05 level.)
a. Use the five steps of hypothesis testing.
b. Sketch the distribution involved.
c. Explain your results.

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Definitions:

Dollar Exposure

The extent to which a company or investor is affected by changes in the value of the U.S. dollar against foreign currencies.

Call Delta

An option's sensitivity measure that indicates how much the price of the call option is expected to change in response to a one-point change in the price of the underlying asset.

Two-State

Usually references a model involving two possible outcomes or states, often used in finance to model investment under uncertainty.

Hedge Ratio

The ratio used to calculate the number of derivatives needed to hedge a particular risk exposure.