A Pharmaceutical Company Is Testing the Effectiveness of a New $\alpha = 0.05$

question 55

Multiple Choice

A pharmaceutical company is testing the effectiveness of a new drug for lowering cholest part of this trial, they wish to determine whether there is a difference between the effectiv for women and men.
At $\alpha = 0.05$ , what is an appropriate test value?
$\begin{array}{lcc}\hline & \text { Women } & \text { Men } \\\hline \text { Sample size } & 50 & 40 \\\text { Mean effectiveness } & 7.9 & 8 \\\text { Population variance } & 3.1 & 3.6\end{array}$
ol. As

• A) -0.66
• B) -3.90
• C) 0.39
• D) -0.26

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Definitions:

Modified Duration

A measure of the sensitivity of a bond's price to changes in interest rates, modified to account for changes in cash flow schedules.

Basis Points

One basis point is equal to 1/100th of 1%, used primarily to denote the change in interest rates, equity indexes, and the yield of fixed-income securities.

Price Decline

A decrease in the market price of an asset or security.

Duration

A measure of the sensitivity of the price of a bond or other fixed-income investment to a change in interest rates, often expressed in years.