An Essential Part of Scientific Thinking Is Not Only How

question 290

Multiple Choice

An essential part of scientific thinking is not only how to use statistics correctly, but also how to identify the misuse of statistics. Our authors suggest that students should:

• A) trust only those statistics that are presented in reputable newspapers and journals.
• B) distrust all statistics because they convey a false impression of certainty and are typically wildly inaccurate.
• C) ask how the statistic was calculated and what data the statistic is based upon.
• D) integrate statistics with "real-life" issues, such as day care, in order to interpret them.

Identify account types and their normal balances.

Calculate financial ratios and understand their implications.

Record transactions in journals and post them to the general ledger.

Understand the steps involved in recording transactions in the accounting process.

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Definitions:

Type I Error

The mistaken dismissal of an accurate null hypothesis, commonly known as a "false positive" result.

Type II Error

In statistical hypothesis testing, the error that occurs when one fails to reject a false null hypothesis (a false negative).

Significant

Indicates that the results in statistical analysis are likely not due to chance, and there is a certain degree of reliability in the findings.

Power

The probability that a statistical test will correctly reject a false null hypothesis, a measure of a test's capability to detect an effect when there is one.