Assume That the Null Hypothesis Says a Person Is "Innocent

question 19

Multiple Choice

Assume that the null hypothesis says a person is "innocent." What is the problem when an innocent person is found guilty?

• A) A Type I error was made
• B) A Type II error was made
• C) A Type III error was made
• D) A Type IV error was made

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Definitions:

Mail Float

The time gap between when a payment is sent via mail and when it is received and processed, affecting the time when the funds become available.

Processing Float

The time difference between when a check is written and when it is actually cleared and funds are deducted from the account.

Availability Float

The time gap between when a deposit is made into a bank account and when the funds become available for use.

Disbursement Float

The time lag between when a payment is made by a company and when the funds are actually removed from the company's bank account.