Imagine That Dr

question 21

Essay

Imagine that Dr. Jones publishes a study that claims that drinking while pregnant is dangerous for the health of the unborn baby. He finds that of the 100 women in his study who drank when pregnant, 78 had children who experienced problems with attention. Of the 100 women in his study who did not drink when pregnant, only 29 children experienced problems with attention. Your neighbor says that Dr. Jones is wrong because she drank when pregnant and her child is perfectly healthy. Explain why Dr. Jones is not wrong.

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Definitions:

Exchange Rate

The price at which one currency can be exchanged for another currency, influencing international trade and investment.

Bushel

A unit of volume that is used in the United States for measuring agricultural commodities, including grains and fruits.

Interest Rate Swap

A financial derivative that companies use to exchange interest rate payments on debt over a set period.

Floating-Rate

An interest rate that fluctuates in response to market conditions or an index.