Use the Following Information for Following Questions

question 37

Multiple Choice

Use the following information for following questions:
A group of 500 patients who suffer from skin cancer were asked to participate in a study to
determine the effectiveness of a new medication. The patients were randomly divided into two
groups, one that was given the actual medication, and one that received a placebo pill. A good
outcome was defined as the cancer being in remission after 6 months of treatment. The results of
the study are below.
-Can we conclude that the cancer remissions were caused by the new medication?

• A)Yes, this is a controlled experiment.Since a higher percent of patients who took the medication had cancer remissions, we can conclude causation.
• B)Yes, this is a controlled experiment.We can always conclude causation with a controlled experiment.
• C)No, even though this is a controlled experiment, there was no difference between the treatment and control groups, so we cannot conclude causation.
• D)No, even though this is a controlled experiment, there might be a confounding factor since the placebo group had cancer remissions too.

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Definitions:

Supply Costs

The expenses incurred to obtain the goods or materials needed for the production of products or services.

Demand Costs

The expenses associated with the demand for goods or services, including production and marketing costs.

EDLP Pricing

A pricing strategy where a company sets consistently low prices for all its products without running short-term promotions.

Reference Price

The price against which buyers compare the actual selling price of the product and that facilitates their evaluation process.