The Ability of a Significance Test to Detect an Effect

question 11

Multiple Choice

The ability of a significance test to detect an effect or relationship when one exists is referred to as ______.

• A) the effect
• B) power
• C) sampling error
• D) inaccuracy

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Definitions:

Margin of Safety

The difference between actual or projected sales and the break-even point, indicating the amount by which sales can drop before reaching a loss.

Break-even Point

The point at which total cost and total revenue are equal, resulting in neither profit nor loss.

Break-even Sales

The amount of revenue required to cover total costs, both fixed and variable, at which point a business neither makes a profit nor suffers a loss.

Variable Cost

Overheads that move in sync with the volume of manufacturing or sales, covering labor and material costs.