A New Research Study Is Published and Becomes the "Hot

question 11

Multiple Choice

A new research study is published and becomes the "hot daily news story." This story concerns you because the researchers report that they are the first scientists to find a higher incidence of depression for individuals taking a particular vitamin-the same vitamin that your physician has had you taking for years.While this may be cause for you to investigate further, why should you probably NOT panic?

• A)Unless it was a double-blind experiment, the results are probably in error.
• B)Research like this is rarely accurate.
• C)Without replication, the finding could just be due to coincidence.
• D)Your physician would have also relied on his own patient feedback throughout the years.

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Definitions:

Present Values

The today's equivalent worth of a future money sum or cash flows, with a particular rate of return taken into account.

Net Cash Values

The amount of cash that could be received if a policy, such as life insurance, is surrendered to the company issuing the policy before its maturity or the insured event occurs.

Historical Relationships

The examination of past relationships among financial variables and their trends over time, used in forecasting and financial analysis.

Actual Bad Debts

Debts that have been specifically identified as uncollectible, following efforts to collect and evidence that repayment is unlikely.