Tests for Adverse Reactions to a New Drug Yielded the Results

question 1

Multiple Choice

Tests for adverse reactions to a new drug yielded the results given in the table.The data will be analyzed to determine if they provide sufficient evidence to conclude that an association
Exists between the treatment (drug or placebo) and the reaction (whether or not headaches
Were experienced) . $\begin{array}{|l|l|l|}\hline & \text { Drug } & \text { Placebo } \\\hline \text { Headaches } & 11 & 7 \\\hline \text { No headaches } & 73 & 91 \\\hline\end{array}$

• A) \(H _ { 0 }\) : The occurrence of headaches is dependent upon the drug.
• \(H _ { A }\) : The occurrence of headaches is not dependent upon the drug.
• B) \(H _ { 0 }\) : The distribution of headaches is different for the drug and the placebo.
• \(H _ { A }\) : The distribution of headaches is the same for the drug and the placebo.
• C) \(H _ { 0 }\) : The drug is independent from the occurrence of headaches.
• \(H _ { A }\) : The drug is not independent from the occurrence of headaches.
• D) \(H _ { 0 }\) : There is a relationship between the drug and occurrence of headaches.
• \(H _ { A }\) : There is no relationship between the drug and occurrence of headaches.
• E) \(H _ { 0 }\) : The drug is related to the occurrence of headaches.
• \(H _ { A }\) : The drug is not related to the occurrence of headaches.

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Definitions:

Aggregate-Demand Curve

A visual depiction illustrating the connection between the total economy's price level and the aggregate demand for products and services at this specific price point.

Interest-Rate Effect

The change in spending and borrowing behavior in an economy due to a change in interest rates, often influencing total demand.

U.S. Economy

The economic system of the United States, characterized by a mixed economy with both private enterprise and government regulation.

Liquidity Preference

A theory that suggests individuals prefer to have their resources in liquid form to meet immediate demands for funds.