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Before being released to market, a drug company tests a new allergy medication for
potential side effects. A random sample of 160 individuals with allergies was selected for
the study. The new allergy medication was randomly assigned to 80 of them, and another
popular allergy medication already on the market (Brand C) was assigned to the rest. Out
of the 80 given the new allergy medication, 14 reported drowsiness; 22 of the 80 taking
Brand C reported drowsiness. Compute the 95% confidence interval for the difference
in proportions reporting drowsiness. Interpret.
Debt-To-Equity Ratio
A financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets, calculated as total liabilities divided by shareholders' equity.
Financing Structure
The mix of debt and equity that a company uses to finance its operations and growth.
Par Value
The face value of a bond or stock as specified by the corporate charter, which is the minimum amount per share that shareholders will receive in the event of the corporation's liquidation.
Market Rate
The current price or cost of goods, services, or commodities as determined by the market supply and demand.
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