A Company Has Tried to Improve the Effectiveness of Its

question 588

Multiple Choice

A company has tried to improve the effectiveness of its dishwashing detergent and wants to see if it
Works better than the original formula. They use 6 identical new dishwashers and load them
Identically with dirty dishes. Three packs of each of the two types of detergent are used, and they
Are randomly assigned to one of the six dishwashers. After the load is run, they rate each load for
Overall cleanliness. Which of the following is true?

• A) The response variable is the type of detergent.
• B) The explanatory variable is the different dishwashers.
• C) A control group with no detergent at all is needed.
• D) Because each brand is used in three dishwashers, replication is used properly.
• E) Blinding is impossible in this experiment because they must be able to see the dishes.

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Definitions:

Volatility

In financial contexts, volatility refers to the degree of variation of a trading price series over time, which is usually measured by the standard deviation of log returns.

Call Increases

Typically refers to an increase in the price of call options, which are contracts that give the holder the right to buy the underlying asset at a specified price.

Wasting Asset

An asset that inexorably declines in value over time due to physical deterioration or the expiration of intangible rights.

Put Option

An option that gives the owner the right, but not the obligation, to sell an asset.