To Test the Effectiveness of a New Drug Designed to Relieve

question 69

Essay

To test the effectiveness of a new drug designed to relieve flu symptoms, 200 patients were randomly selectedand divided into two equal groups. One group of 100 patients was given a pill containing the drug while theother group of 100 was given a placebo. What can we conclude about the effectiveness of the drug if 62 of thoseactually taking the drug felt a beneficial effect while 41 of the patients taking the placebo felt a beneficial effect?Use α = 0.05.

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Definitions:

Ledger

The principal book or computer file for recording and totaling economic transactions measured in terms of a monetary unit of account by account type.

Journalizing

The act of recording financial transactions in a company's journal, detailing debits and credits, part of the first step in the accounting cycle.

Fraudulent Activity

Intentional deception or misrepresentation that an individual or entity makes to gain a benefit or advantage.

Double-Entry Bookkeeping

An accounting system where every entry to an account requires a corresponding and opposite entry to a different account.