A Researcher Wanted to Study the Relationship Between Coffee Drinking

question 52

Multiple Choice

A researcher wanted to study the relationship between coffee drinking and heart problems. She interviewed all patients at several area hospitals and found that patients in the hospital for treatment of heart problems drank an average of 2.7 cups of coffee per day (Margin of error is 1.4 cups) while those patients being treated for other problems averaged only 1.4 cups of coffee per day (Margin of error is 0.8 cups) . What conclusion can you draw about coffee as a
Cause of heart problems from this information?

• A) Coffee is bad for you.
• B) Coffee is good for you.
• C) Heart patients drink more coffee than other patients.
• D) None, because only patients in hospitals were interviewed.

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Definitions:

Transactional Leaders

Leaders who focus on the role of supervision, organization, and group performance, often through a system of rewards and penalties.

Present Value

The current worth of future money or cash flow streams, estimated with a specific rate of return.

Annuity

A financial product that pays out a fixed stream of payments to an individual, typically used as an income stream for retirees.

Discount Rate

The discount rate utilized in DCF analysis for assessing the present worth of upcoming cash flows.