Suppose That We Reject a Null Hypothesis at the 0 $\alpha$

question 54

Multiple Choice

Suppose that we reject a null hypothesis at the 0.05 level of significance.Then for which of the following $\alpha$ -values do we also reject the null hypothesis?

• A) 0.06
• B) 0.04
• C) 0.03
• D) 0.02

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Definitions:

Return

The gain or loss on an investment over a specific period, usually expressed as a percentage of the investment's initial cost.

Total Risk

The complete range of risks associated with an investment, including both systemic and unsystematic risk.

Modigliani

Refers to Franco Modigliani, an Italian-American economist known for his work on corporate finance, the Modigliani-Miller theorem, and the life-cycle hypothesis of saving.

Developed

Pertains to countries that have a high level of industrialization, a high standard of living, and a well-established economic structure.