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Risk Is the Condition in Which the Decision Maker Is

question 84

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Risk is the condition in which the decision maker is able to estimate the likelihood of certain outcomes.


Definitions:

Standard Errors

The standard deviation of the sampling distribution of a statistic, commonly used in estimating the margin of error.

Operating Characteristic Curve

A graph that shows the capability of a test to distinguish between different states, such as defective and non-defective items.

Type II Error

The statistical mistake of failing to reject a false null hypothesis, or the error of not detecting an effect or difference when one truly exists.

Type I Error

Incorrectly dismissing a true null hypothesis as false.

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