Before Being Released to Market, a Drug Company Tests a New

question 34

Multiple Choice

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. The 95% confidence interval for the difference in
Proportions reporting drowsiness is -0.028 to 0.228. Which of the following is correct?

• A) We are 95% confident that there is no difference between the proportions of patients
• Reporting drowsiness for the two allergy medications.
• B) We are 95% confident that there is a difference between the proportions of patients
• Reporting drowsiness for the two allergy medications.
• C) We are 95% confident that the proportion of patients reporting drowsiness is higher
• For the new allergy medication.
• D) We are 95% confident that the proportion of patients reporting drowsiness is lower
• For the new allergy medication.
• E) There will be a significant difference between the proportions 95% of the time.

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Definitions:

Flexible Budget

A flexible budget adjusts according to the actual levels of activity experienced, allowing for more accurate comparisons of budgeted to actual performance.

Static Budget

A budget that is set for a specific level of activity and does not change or adjust with the actual level of activity achieved.

Fixed Manufacturing Overhead

The set costs involved in producing a product that do not change with the level of production, such as rent, salaries, and utilities.

Master Budget

A comprehensive financial plan comprising various individual budgets covering all facets of an organization's operations.