Examlex
Implementing a dividend valuation model to determine the value of the common shareholders' equity requires an analyst to measure three elements.What are the three elements that the analyst needs to measure?
P-value
The probability of observing the tested result, or one more extreme, if the null hypothesis is true.
α
Typically represents the level of significance in hypothesis testing, indicating the probability of rejecting the null hypothesis when it is true.
Type I Error
The statistical mistake of rejecting a null hypothesis when it is actually true, also known as a "false positive".
Type II Error
The error that occurs when the null hypothesis is falsely not rejected, missing the detection of an actual effect.
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