Consider an Experiment in Which a Pharmaceutical Company Is Testing

question 35

Multiple Choice

Consider an experiment in which a pharmaceutical company is testing a new drug that they hope will lower cholesterol levels. They administer three treatments: A dose of the drug, a dose of a placebo, and a control group that receives neither drug nor placebo. after 24 hours they then measured the cholesterol levels and compared the values to baseline levels measured prior to treatment. The table below shows the results of the experiment.
​​ $\begin{array}{|l|l|l|}\hline \text { Treatment } & \text { Chol. lower } & \begin{array}{l}\text { Chol. increased } \\\text { or the same }\end{array} \\\hline \text { Drug } & 64 & 36 \\\hline \text { Placebo } & 51 & 49 \\\hline \text { Control } & 48 & 52 \\\hline\end{array}$
-Assuming a null hypothesis of no relationship between diet and weight gain, which of the following values is closest to the expected count of individuals in the placebo group that showed lower cholesterol levels?

• A) 46
• B) 49
• C) 51
• D) 54

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Definitions:

Gross Profit

The difference between sales revenue and the cost of goods sold, indicating the profitability of a company's core activities.

Periodic Inventory System

An accounting method where inventory is updated and cost of goods sold is calculated at the end of an accounting period.

FIFO

FIFO stands for "First-In, First-Out," an inventory valuation method where goods first acquired are sold or used first, ensuring that older inventory is used before newer inventory.

Ending Inventory

The aggregate worth of merchandise ready for purchase at the conclusion of a financial period.