Johnson Is Hired by a Company to See If a New

question 156

Multiple Choice

Johnson is hired by a company to see if a new product,Topocal,will cause hair to grow on the heads of bald men.He recruits one thousand bald men,and randomly divides them into two groups:Five hundred (group A) rub Topocal on their scalps each day;the other five hundred (group B) rub a standard skin lotion on their scalps each day.After two months,Johnson checks to see what the results have been.He finds that there has been hair growth in 7 percent of group A and in 2 percent of group B.Given the size of Johnson's two groups,would you say that the results of the test are statistically significant?

• A)yes
• B)no
• C)no way to tell

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Definitions:

Output

The total quantity of goods or services produced by a company, industry, or economic system.

Price

The amount of money required to purchase a good, service, or asset, determined by factors like supply and demand, production costs, and market competition.

Economies Of Scale

The cost advantage that arises with increased output of a product, where the cost per unit decreases as production expands.

Financial Resources

Funds available to a business or individual for spending in the form of cash, liquid securities, and credit lines.