The Data in the Following Table Show the Outcomes of the Testing

question 52

Multiple Choice

The data in the following table show the outcomes of the testing of an allergy drug on 500 people. $$\begin{array} { l | c | c | c | c } & \begin{array} { c } \text { Allergy } \\\text { drug }\end{array} & \text { Placebo } & \begin{array} { c } \text { Control } \\\text { (no treatment) }\end{array} & \text { Total } \\\hline \text { Improvement } & 145 & 85 & 41 & 271 \\\text { No improvement } & 55 & 115 & 59 & 229 \\\text { Total } & 200 & 200 & 100 & 500\end{array}$$
-What is the probability that a randomly selected person was not given the placebo or improved?

• A)0.628
• B)0.77
• C)0.23
• D)0.372

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Definitions:

Systematic Risk

The risk inherent to the entire market or market segment, which cannot be mitigated through diversification.

Security Market Line

A representation in financial markets of the relationship between risk and expected return, used in the Capital Asset Pricing Model.

Overpriced Security

A security trading at a price believed to be higher than its theoretical value or intrinsic worth.

Expected Market Rate

The anticipated rate of return on an investment as predicted by investors based on historical market data and trends.