Use the Guidelines to Evaluate the Study

question 175

Multiple Choice

Use the guidelines to evaluate the study. From the information given, what is the biggest flaw in the study?
-A pharmaceutical company conducted a study to test the effectiveness of its new anti-depression medication. 500 adults suffering from depression were selected at random and were randomly
Assigned to either a treatment group or a placebo group. The experiment was double blind. The
Results were analyzed by the company.

• A)Selection bias
• B)The setting may not encourage honest responses
• C)The source of the study
• D)Confounding variables
• E)Variables are difficult to define/measure

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Definitions:

Market Interest Rates

The prevailing rates at which borrowers can obtain loans and lenders can invest in debt securities, influenced by the overall demand and supply.

Precautionary Motive

The need to hold cash as a safety margin to act as a financial reserve.

Liquidity

The ease with which an asset can be converted into cash without affecting its market price.

Planned Expenditures

Forecasted spending for specific purposes within a certain time frame, often categorized into operating or capital expenditures.