If the Media Reports That Eating Bacon Is Associated with Colon

question 165

Multiple Choice

If the media reports that eating bacon is associated with colon cancer, one should

• A) avoid eating bacon because it probably causes colon cancer.
• B) assume that the report came from a carefully controlled study.
• C) remember that correlation does not mean causation.
• D) know that any type of meat will have the same effect.

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Definitions:

Pre-split Price

The stock price of a company before it undergoes a stock split, which increases the number of shares while reducing the price per share.

Post-split Price

The adjusted price of a stock after a company has completed a stock split.

Stock Dividend

A dividend payment made in the form of additional shares rather than cash, reflecting a company's desire to reinvest its profits.

Outstanding Shares

The total number of shares of stock that are currently owned by investors, including restricted shares owned by the company’s officers and insiders.