Exhibit 11-6 In Order to Determine Whether or Not a Particular Medication

question 102

Multiple Choice

Exhibit 11-6
In order to determine whether or not a particular medication was effective in curing the common cold, one group of patients was given the medication, while another group received sugar pills. The results of the study are shown below.
We are interested in determining whether or not the medication was effective in curing the common cold.
-Refer to Exhibit 11-6. The hypothesis is to be tested at the 5% level of significance. The critical value from the table equals

• A)3.84
• B)7.81
• C)5.99
• D)9.34

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Definitions:

Statistical Significance

Refers to the likelihood that a relationship between two or more variables is caused by something other than random chance.

Slope

In mathematics, the slope or gradient of a line is a number that describes both the direction and the steepness of the line.

Least-Squares Equation

A mathematical method used to find the best-fitting curve to a set of data points by minimizing the sum of the squares of the offsets ("the residuals") of the points from the curve.

House Prices

The prices at which individual houses are bought and sold in the real estate market.