If You Use a Significance Level of

question 57

Multiple Choice

If you use a significance level of .01 rather than a significance level of .05 then which of the following will be true (assuming other things equal, such as sample size) ?

• A) You are more likely to fail to reject your null hypothesis
• B) You are more likely to reject your null hypothesis
• C) You are more likely to reject a true null hypothesis
• D) You are more likely to retain your alternative hypothesis

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Definitions:

Effective Tax Rate

The average percentage of their total income that individuals or corporations pay in taxes.

Profit/(Loss) Realized

The actual gain or loss generated from completing a transaction.

Intercompany Sale

The sale of goods or services between divisions or subsidiaries within the same parent company.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the usage, wear and tear, or obsolescence of the asset.