The Following Table Shows the Results from a Study to See

question 18

Multiple Choice

The following table shows the results from a study to see if a home remedy ointment for mosquito bites worked better than a placebo. Each participant was randomly assigned to receive the home remedy ointment or the placebo ointment. "Improvement" means there were no symptoms of itching after three minutes. The alternative hypothesis is that the home remedy ointment leads to improvement (in this case, less itching) . The p- value for a one- tailed Fisher's exact test with these data is 0.618. Suppose the study had turned out differently, as in the following table.
Would Fisher's Exact Test have led to a p- value larger or smaller than 0.618?

• A)The p- value would be smaller.
• B)The p- value would be larger.

---

Definitions:

Accounting Beta

A measure of the sensitivity of a firm's earnings before interest and taxes to changes in the market as a whole.

Pure Play Method

A valuation method focusing on companies specializing in a single line of business to estimate investment risks and returns.

Scenario Analysis

A method used in finance to analyze the different possible outcomes of a decision given varying sets of assumptions.

Sensitivity Analysis

A financial modeling tool used to determine how different values of an independent variable will impact a particular dependent variable under a given set of assumptions.