Suppose That a Medical Study Found a Statistically Significant Relationship

question 7

Multiple Choice

Suppose that a medical study found a statistically significant relationship between wearing gold jewelry and developing skin cancer.Suppose the study was based on a sample of 100,000 people and had a p-value of .049.How would you react to these results?

• A)You feel these results are very convincing since the sample size was so large.
• B)You are impressed by the sample size but the p-value is too close to .05 to feel very convinced; the result is marginal.
• C)You are skeptical because the high sample size would lead to a small p-value even with a miniscule relationship, and thus gives misleading results.
• D)None of the above

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Definitions:

Ending Finished Goods Inventory

The value of products available for sale at the end of an accounting period, after all manufacturing costs are accounted for.

Fixed

Refers to something that is unchanging and stable, often used in the context of expenses or assets that do not vary with production volume.

Variable

An element, feature, or factor that is likely to vary or change; in scientific experiments, this is the factor being tested or measured.

Product Cost

Product cost refers to the total expenditure incurred to create a product, including direct materials, direct labor, and manufacturing overhead.