The Relationship Between the Alpha Level and the Confidence Level

question 45

Multiple Choice

The relationship between the alpha level and the confidence level is such that

• A) the lower the alpha, the higher the confidence level
• B) the lower the alpha, the lower the confidence level
• C) they are not related until the confidence level reaches .95
• D) none of these, since they are not related at all

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Definitions:

360-Day Year

An accounting practice that simplifies interest calculations by assuming a year has 360 days.

Dealer Charged

The price or fee a dealer applies to a product or service, usually including their markup over the wholesale or dealer price.

Exact Simple Interest

A calculation method where interest is determined using the actual number of days in a loan period over a 360 or 365-day year, depending on the terms.

365-Day Year

The 365-Day Year is a time measurement convention considering a year to have exactly 365 days, ignoring leap years.