Dr Ross's Diet Pills Are Supposed to Cause Significant Weight

question 30

Essay

Dr. Ross's diet pills are supposed to cause significant weight loss. The following table shows the results of a recent study where a random sample of individuals took part in a placebo controlled study.
​ $$\begin{array} { c | c c | c } & \text { Diet Pills } & \text { No Diet Pills } & \text { Total } \\\hline \text { No Weight Loss } & 80 & 20 & 100 \\\text { Weight Loss } & 100 & 100 & 200 \\\hline \text { Total } & 180 & 120 & 300\end{array}$$ ​
With 95% confidence, determine if weight loss is dependent upon taking the diet pills.

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Definitions:

Cash Account

An account that tracks the amount of cash available to a business or individual.

Raw Materials Inventory

The total cost of all the materials kept in stock that have not yet been used in manufacturing.

Net Operating Income

The total profit of a company after operating expenses are subtracted from operating revenues but before deducting taxes and interest.

Materials Quantity Variance

The deviation found by multiplying the standard cost per unit with the difference in the actual and expected standard volumes of materials used in the production process.