We Reject the Null Hypothesis of No Effect If the P-Value

question 50

Multiple Choice

We reject the null hypothesis of no effect if the p-value is typically

• A) ≤ 0.05.
• B) ≤ 0.10.
• C) ≥ 0.5.
• D) ≥ 1.

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Definitions:

Transaction Motive

The need to hold cash for the purpose of conducting day-to-day business operations.

Float Management

The practice of managing the time difference between the writing of a check and its clearing at the bank, aiming to optimize the use of available funds.

Small Firm

A business with a limited number of employees and revenue, often defined within specific legal frameworks based on the industry.

Sources of Float

Sources of float include the time difference between when a payment is initiated and when it is actually cleared and becomes available in a company's bank account, affecting the management of cash flow.