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:

Corporate Treasury

The division of a corporation that manages the company's liquidity, financing activities, and financial risk.

Minority Shares

Shares of stock that represent less than half of the control of a company, often held by investors who have limited influence on corporate decisions.

Business Judgment Rule

A legal principle that protects corporate directors' decision-making from judicial review as long as the decisions are made in good faith.

Shareholder's Demand

A formal request by a shareholder, typically for corporate information or to take specific actions, under legal rights.