Exhibit 11-3
in Order to Determine Whether or Not a Particular

question 99

Multiple Choice

Exhibit 11-3
In order to determine whether or not a particular medication was effective in curing the common cold, one group of patients was given the medication, while another group received sugar pills. The results of the study are shown below.
$\begin{array}{lll}&\text { Patients Cured }&\text { Patients Not Cured }\\\text { Received medication } & 70 & 10 \\\text { Received sugar pills } & 20 & 50\end{array}$ We are interested in determining whether or not the medication was effective in curing the common cold.
-Refer to Exhibit 11-3. The hypothesis is to be tested at the 5% level of significance. The critical value from the table equals

• A) 3.84
• B) 7.81
• C) 5.99
• D) 9.34

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Definitions:

Account Category

A way of classifying accounts in accounting records, such as assets, liabilities, equity, revenues, and expenses.

Financial Statement

An official document detailing the financial transactions and standing of an entity such as a company, individual, or organization, commonly encompassing a balance sheet, income statement, and statement of cash flows.

Normal Balance

The usual balance of an accounting account, either a debit for assets and expenses or a credit for liabilities, equity, and income.

Account Category

A classification for financial transactions that helps in organizing and reporting them in the financial statements, such as assets, liabilities, equity, revenues, and expenses.