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:

Financial Measures

Quantitative figures used to assess a company's performance, financial health, and prospects for future success.

Controllable Margin

The portion of profit or cost that a manager has the power to directly control or influence through decisions and actions.

Labor Productivity

A measure of economic performance calculated by dividing the output of goods and services by the labor hours devoted to the production of that output.

Controllable Margin

The portion of profit or income generated by a business or department that can be directly controlled or influenced by management decisions.