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If the appropriate timely surgery is not performed on someone who has suffered from appendicitis, the outcome can be potentially fatal; consequently, patients with symptoms strongly suggesting appendicitis are almost always made to undergo a surgery, whether they have actually had appendicitis or not. The appropriate surgery is extremely low-risk but is performed unnecessarily in about 20 percent of all cases. A newly developed internal scan to determine whether someone with symptoms of appendicitis has actually had appendicitis produces absolutely correct diagnosis in 98% of the cases. Clearly, using this scan, doctors can largely avoid unnecessary surgeries related to appendicitis, without, however, performing any fewer necessary surgeries.
Which of the following assumption is required for the conclusion to be always true?
  • a)
    the misdiagnoses produced by this scan are always instances of attributing appendicitis to someone who has not had it
  • b)
    the misdiagnoses produced by this scan are never instances of attributing appendicitis to someone who has not had it
  • c)
    all of the patients who are diagnosed with this scan as having had appendicitis have actually had appendicitis
  • d)
    every patient who is diagnosed with this scan as having had appendicitis always has more than one of the symptoms associated with appendicitis
  • e)
    the only patients who are misdiagnosed using this scan are patients who lack one or more of the symptoms that are generally associated with appendicitis
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
If the appropriate timely surgery is not performed on someone who has ...
A. The misdiagnoses resulting from this scan always involve mistakenly attributing appendicitis to individuals who do not actually have it. This implies that any incorrect results from the scan are consistently false positives, ensuring that nobody who requires surgery is misdiagnosed as not needing it. This saves valuable time.
B. The misdiagnoses produced by this scan never involve mistakenly attributing appendicitis to individuals who do not have it. In contrast to (A), if the misdiagnoses are always false negatives, considering them as true negatives would lead to necessary surgeries not being performed. This contradicts the conclusion, so this option is rejected.
C. All of the patients diagnosed with appendicitis through this scan have genuinely experienced the condition. Similar to (B), this answer requires some inference or deduction. Since all positive test results are accurate, the 2% inaccuracy must lie in the negative test results. Inaccurate negative results imply that some individuals who should have tested positive are instead tested negative. Unfortunately, these individuals may be overlooked, potentially leading to fatal consequences. Moreover, this means that doctors will perform fewer necessary surgeries, which undermines the conclusion.
D. Every patient diagnosed with appendicitis through this scan always exhibits more than one symptom associated with the condition. This option merely includes buzzwords without providing substantial information. The presence or absence of symptoms, even multiple ones, is irrelevant to the conclusion. The focus should be on the accuracy of the scan, regardless of symptomatology.
E. The only patients misdiagnosed using this scan are those who lack one or more symptoms typically associated with appendicitis. While it is important to know which patients receive a diagnosis from the scan, the crucial aspect is determining whether the misdiagnosed patients genuinely have appendicitis or not. Knowledge of their symptom presentation is not particularly useful, as the scan aims to be a more reliable indicator of appendicitis than symptom analysis. Trusting symptoms is unreliable in this scenario, and emphasizing their relation to the scan's accuracy does not contribute meaningfully to the discussion.
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A firms default risk, the measurement of the chances of the event in which the company will be unable to make the required payments on its debt obligations, reflects not only the likelihood that the firm will have bad luck but also the risk that the firms managerial decisions will lead the firm to default. Such management risk occurs because the impact of management on the firms value is uncertain, and this uncertainty affects the markets perception of a firms risk. Uncertainty about management is likely to be the highest when there is a new management team and should decrease over time as managements ability becomes known more precisely. In particular, when the new CEO is not considered an heir apparent prior to getting the position, or when he comes from outside of the company, or when the new CEO is younger, the market is expected to perceive relatively high uncertainty about the CEOs ability or future actions. Accordingly, it comes as no surprise that the CDS spread, a measure of a firms expected default risk, is about 35 basis points higher when a new CEO takes office than three years into his tenure. The CEO, however, is not the only member of the management team who is relevant for decision making in the firm. Chief Financial Officers (CFOs) have a large role in financial decision-making, so uncertainty about new CFOs could also affect the firms default risk and cost of borrowing.Now, a central feature of financial markets is that the interest rate a firm pays on debt increases with an increase in the markets perception of the firms risk. This risk occurs because of factors that affect the value of the firms underlying assets and because of uncertainty about how these assets will be managed. The literature on debt pricing typically does not distinguish between these types of underlying risks. However, all risks, including those generated by uncertainty about management, affect the likelihood of default. Consequently, a rational market should incorporate managerial-generated uncertainty into its assessment of a firms risk when pricing its securities. Also since uncertainty about management affects firms costs of borrowing and consequently their financial policies, the value of maintaining transparency in managerial policies and communicating them to the marketplace should be realised.Which of the following statements would the author most likely agree with?

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If the appropriate timely surgery is not performed on someone who has suffered from appendicitis, the outcome can be potentially fatal; consequently, patients with symptoms strongly suggesting appendicitis are almost always made to undergo a surgery, whether they have actually had appendicitis or not. The appropriate surgery is extremely low-risk but is performed unnecessarily in about 20 percent of all cases. A newly developed internal scan to determine whether someone with symptoms of appendicitis has actually had appendicitis produces absolutely correct diagnosis in 98% of the cases. Clearly, using this scan, doctors can largely avoid unnecessary surgeries related to appendicitis, without, however, performing any fewer necessary surgeries.Which of the following assumption is required for the conclusion to be always true?a)the misdiagnoses produced by this scan are always instances of attributing appendicitis to someone who has not had itb)the misdiagnoses produced by this scan are never instances of attributing appendicitis to someone who has not had itc)all of the patients who are diagnosed with this scan as having had appendicitis have actually had appendicitisd)every patient who is diagnosed with this scan as having had appendicitis always has more than one of the symptoms associated with appendicitise)the only patients who are misdiagnosed using this scan are patients who lack one or more of the symptoms that are generally associated with appendicitisCorrect answer is option 'A'. Can you explain this answer?
Question Description
If the appropriate timely surgery is not performed on someone who has suffered from appendicitis, the outcome can be potentially fatal; consequently, patients with symptoms strongly suggesting appendicitis are almost always made to undergo a surgery, whether they have actually had appendicitis or not. The appropriate surgery is extremely low-risk but is performed unnecessarily in about 20 percent of all cases. A newly developed internal scan to determine whether someone with symptoms of appendicitis has actually had appendicitis produces absolutely correct diagnosis in 98% of the cases. Clearly, using this scan, doctors can largely avoid unnecessary surgeries related to appendicitis, without, however, performing any fewer necessary surgeries.Which of the following assumption is required for the conclusion to be always true?a)the misdiagnoses produced by this scan are always instances of attributing appendicitis to someone who has not had itb)the misdiagnoses produced by this scan are never instances of attributing appendicitis to someone who has not had itc)all of the patients who are diagnosed with this scan as having had appendicitis have actually had appendicitisd)every patient who is diagnosed with this scan as having had appendicitis always has more than one of the symptoms associated with appendicitise)the only patients who are misdiagnosed using this scan are patients who lack one or more of the symptoms that are generally associated with appendicitisCorrect answer is option 'A'. Can you explain this answer? for GMAT 2024 is part of GMAT preparation. The Question and answers have been prepared according to the GMAT exam syllabus. Information about If the appropriate timely surgery is not performed on someone who has suffered from appendicitis, the outcome can be potentially fatal; consequently, patients with symptoms strongly suggesting appendicitis are almost always made to undergo a surgery, whether they have actually had appendicitis or not. The appropriate surgery is extremely low-risk but is performed unnecessarily in about 20 percent of all cases. A newly developed internal scan to determine whether someone with symptoms of appendicitis has actually had appendicitis produces absolutely correct diagnosis in 98% of the cases. Clearly, using this scan, doctors can largely avoid unnecessary surgeries related to appendicitis, without, however, performing any fewer necessary surgeries.Which of the following assumption is required for the conclusion to be always true?a)the misdiagnoses produced by this scan are always instances of attributing appendicitis to someone who has not had itb)the misdiagnoses produced by this scan are never instances of attributing appendicitis to someone who has not had itc)all of the patients who are diagnosed with this scan as having had appendicitis have actually had appendicitisd)every patient who is diagnosed with this scan as having had appendicitis always has more than one of the symptoms associated with appendicitise)the only patients who are misdiagnosed using this scan are patients who lack one or more of the symptoms that are generally associated with appendicitisCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for GMAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If the appropriate timely surgery is not performed on someone who has suffered from appendicitis, the outcome can be potentially fatal; consequently, patients with symptoms strongly suggesting appendicitis are almost always made to undergo a surgery, whether they have actually had appendicitis or not. The appropriate surgery is extremely low-risk but is performed unnecessarily in about 20 percent of all cases. A newly developed internal scan to determine whether someone with symptoms of appendicitis has actually had appendicitis produces absolutely correct diagnosis in 98% of the cases. Clearly, using this scan, doctors can largely avoid unnecessary surgeries related to appendicitis, without, however, performing any fewer necessary surgeries.Which of the following assumption is required for the conclusion to be always true?a)the misdiagnoses produced by this scan are always instances of attributing appendicitis to someone who has not had itb)the misdiagnoses produced by this scan are never instances of attributing appendicitis to someone who has not had itc)all of the patients who are diagnosed with this scan as having had appendicitis have actually had appendicitisd)every patient who is diagnosed with this scan as having had appendicitis always has more than one of the symptoms associated with appendicitise)the only patients who are misdiagnosed using this scan are patients who lack one or more of the symptoms that are generally associated with appendicitisCorrect answer is option 'A'. Can you explain this answer?.
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Clearly, using this scan, doctors can largely avoid unnecessary surgeries related to appendicitis, without, however, performing any fewer necessary surgeries.Which of the following assumption is required for the conclusion to be always true?a)the misdiagnoses produced by this scan are always instances of attributing appendicitis to someone who has not had itb)the misdiagnoses produced by this scan are never instances of attributing appendicitis to someone who has not had itc)all of the patients who are diagnosed with this scan as having had appendicitis have actually had appendicitisd)every patient who is diagnosed with this scan as having had appendicitis always has more than one of the symptoms associated with appendicitise)the only patients who are misdiagnosed using this scan are patients who lack one or more of the symptoms that are generally associated with appendicitisCorrect answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. 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Clearly, using this scan, doctors can largely avoid unnecessary surgeries related to appendicitis, without, however, performing any fewer necessary surgeries.Which of the following assumption is required for the conclusion to be always true?a)the misdiagnoses produced by this scan are always instances of attributing appendicitis to someone who has not had itb)the misdiagnoses produced by this scan are never instances of attributing appendicitis to someone who has not had itc)all of the patients who are diagnosed with this scan as having had appendicitis have actually had appendicitisd)every patient who is diagnosed with this scan as having had appendicitis always has more than one of the symptoms associated with appendicitise)the only patients who are misdiagnosed using this scan are patients who lack one or more of the symptoms that are generally associated with appendicitisCorrect answer is option 'A'. 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Clearly, using this scan, doctors can largely avoid unnecessary surgeries related to appendicitis, without, however, performing any fewer necessary surgeries.Which of the following assumption is required for the conclusion to be always true?a)the misdiagnoses produced by this scan are always instances of attributing appendicitis to someone who has not had itb)the misdiagnoses produced by this scan are never instances of attributing appendicitis to someone who has not had itc)all of the patients who are diagnosed with this scan as having had appendicitis have actually had appendicitisd)every patient who is diagnosed with this scan as having had appendicitis always has more than one of the symptoms associated with appendicitise)the only patients who are misdiagnosed using this scan are patients who lack one or more of the symptoms that are generally associated with appendicitisCorrect answer is option 'A'. 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Clearly, using this scan, doctors can largely avoid unnecessary surgeries related to appendicitis, without, however, performing any fewer necessary surgeries.Which of the following assumption is required for the conclusion to be always true?a)the misdiagnoses produced by this scan are always instances of attributing appendicitis to someone who has not had itb)the misdiagnoses produced by this scan are never instances of attributing appendicitis to someone who has not had itc)all of the patients who are diagnosed with this scan as having had appendicitis have actually had appendicitisd)every patient who is diagnosed with this scan as having had appendicitis always has more than one of the symptoms associated with appendicitise)the only patients who are misdiagnosed using this scan are patients who lack one or more of the symptoms that are generally associated with appendicitisCorrect answer is option 'A'. 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Clearly, using this scan, doctors can largely avoid unnecessary surgeries related to appendicitis, without, however, performing any fewer necessary surgeries.Which of the following assumption is required for the conclusion to be always true?a)the misdiagnoses produced by this scan are always instances of attributing appendicitis to someone who has not had itb)the misdiagnoses produced by this scan are never instances of attributing appendicitis to someone who has not had itc)all of the patients who are diagnosed with this scan as having had appendicitis have actually had appendicitisd)every patient who is diagnosed with this scan as having had appendicitis always has more than one of the symptoms associated with appendicitise)the only patients who are misdiagnosed using this scan are patients who lack one or more of the symptoms that are generally associated with appendicitisCorrect answer is option 'A'. Can you explain this answer? tests, examples and also practice GMAT tests.
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