In Which of the Following Cases Would an Observational Study

question 78

Multiple Choice

In which of the following cases would an observational study be preferable to a traditional experiment?

• A) A researcher wants to know whether a new drug works better than a standard treatment.
• B) A researcher is curious whether strawberry or chocolate ice cream tends to improve mood more.
• C) A researcher wants to know whether men are more likely than women to run red lights.
• D) Observational studies are preferable to experiments in all of the above cases.

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Definitions:

Variable Administrative Expense

Expenses that fluctuate in total in direct proportion to changes in activity level, such as sales volume or production output.

Gross Margin

The difference between revenue and cost of goods sold, divided by revenue, expressed as a percentage. It represents the percentage of total sales revenue that the company retains after incurring the direct costs associated with producing the goods and services sold.

Variable Selling Expense

Costs that vary directly with the volume of sales, such as commissions, shipping charges, and promotional expenses.

Cost of Goods Sold

The financial outlays directly associated with the production of a company's sold merchandise.