Tests for Adverse Reactions to a New Drug Yielded the Results

question 6

Multiple Choice

Tests for adverse reactions to a new drug yielded the results given in the table.The data will be analyzed to determine if they provide sufficient evidence to conclude that an association exists between the treatment (drug or placebo) and the reaction (whether or not headaches were experienced) .

• A) : The distribution of headaches is different for the drug and the placebo. : The distribution of headaches is the same for the drug and the placebo.
• B) : The drug is related to the occurrence of headaches. : The drug is not related to the occurrence of headaches.
• C) : There is a relationship between the drug and occurrence of headaches. : There is no relationship between the drug and occurrence of headaches.
• D) : The occurrence of headaches is dependent upon the drug. : The occurrence of headaches is not dependent upon the drug.
• E) : The drug is independent from the occurrence of headaches. : The drug is not independent from the occurrence of headaches.

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Definitions:

Marginal Revenue

The additional revenue that a firm receives from selling one more unit of a product.

Barriers to Entry

Obstacles that deter or limit the ease with which newcomers can penetrate an industry or business field.

Government Regulation

Rules established by authorities designed to control and guide the practices of businesses, protect consumers, and support fair market competition.

Marginal Revenue

The increase in revenue that results from selling one additional unit of a product or service.