Imagine the Value of a T-Statistic Is Greater Than the Critical

question 84

Multiple Choice

Imagine the value of a t-statistic is greater than the critical value for α = .05 but less than the critical value for α = .01. Which of the following is the level of significance for this t-statistic?

• A) p < .01 (but not < .05)
• B) p > .01
• C) p > .01 (but not < .05)
• D) p < .05 (but not < .01)

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Definitions:

Expected Value

A statistical measure that calculates the average outcome of a random variable or process, factoring in all possible values and their probabilities.

Efficient Allocation

The distribution of resources in such a manner that it's impossible to improve anyone's condition without worsening someone else's.

Risk Diversified

The strategy of spreading investments across various assets to reduce exposure to risk in any single area.

Expected Income

The amount of income an individual anticipates or forecasts to receive over a certain period.