CASE STUDY 27.9 SO YOU THOUGHT SPINACH WAS GOOD FOR YOU

question 22

Multiple Choice

CASE STUDY 27.9
SO YOU THOUGHT SPINACH WAS GOOD FOR YOU?
For Questions , use the following narrative
Narrative: Case study 27.9 summary
A study published in the New England Journal of Medicine shows that the antioxidant beta-carotene markedly increased the incidence of lung cancer among heavy smokers in Finland.Incidence of lung cancer was 18% higher among the 14,500 smokers who took beta-carotene than among the 14,500 who didn't.The probability that the observed increase was due to chance is less than one in one hundred.(A difference in such studies is taken seriously when the probability that it happened by chance is less than one in twenty.) This result was particularly worrying to researchers and the media, because it comes from a large, randomized clinical trial, yet it goes against all the previously available evidence.Over a hundred epidemiologic studies indicate that people who have high levels of beta-carotene in their diet and in their blood have lower risks of cancer, particularly lung cancer.

-{Case study 27.9 narrative} "The probability that the observed increase in lung cancer was due to chance is less than one in one hundred." What is this equivalent to saying?

• A)The p-value is less than .01.
• B)The results of the study are not statistically significant.
• C)The significance level associated with this test is less than .01.
• D)None of the above.

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Definitions:

Diluted Earnings Per Share

A performance metric that shows the quality of earnings per share if all convertible securities were exercised.

Complex Capital Structures

Refers to corporate financial structures that feature a mix of simple and intricate financial instruments, such as multiple classes of stock or convertible bonds.

Cash Dividend

A distribution of a company's profits to its shareholders in the form of cash.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its current assets.