A Manufacturer of Headache Medicine Claims It Is 70% Effective

question 45

Multiple Choice

A manufacturer of headache medicine claims it is 70% effective within a few minutes. That is,out of every 100 users,70 get relief within a few minutes. A group of 12 patients are given the medicine. If the claim is true,what is the probability that eight have relief within a few minutes?

• A)0.001
• B)0.168
• C)0.667
• D)0.231

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Definitions:

Crossover Point

The crossover point is the moment when two or more alternatives have the same value or cost, often used in financial analysis to determine when an investment will start to be profitable.

Initial Investment

Initial investment refers to the amount of money invested in a project, asset, or business venture at the start.

Crossover Rate

The point at which two projects have the same net present value (NPV), used in capital budgeting to determine the rate of return at which an investor would be indifferent between the two projects.