What Does a ".05 Level of Significance" Mean

question 65

Multiple Choice

What does a ".05 level of significance" mean?

• A) A result is considered significant if it would occur 5 (or fewer) times out of 100 when the null hypothesis is true.
• B) There is a 5% chance that the null hypothesis is true.
• C) There is a 5% chance of proving your results.
• D) There is a 5% chance of making a Type II error.

Comprehend the principles related to the formation of interim agreements.

Evaluate the enforceability of electronic commerce agreements.

Understand the impact of government intervention and market forces on production levels.

Identify the concept of externalities, including positive externalities and negative externalities.

---

Definitions:

Tax Revenue

The earnings achieved by governments by levying taxes.

Excess Burden

The cost to society created by market inefficiency, mainly used in the context of taxes that cause consumers and producers to alter their behavior in ways that reduce economic well-being.

Excess Burden

The cost to society created by market inefficiency, which occurs when goods or services are not produced or allocated efficiently.

Economic Decisions

Choices made by individuals, households, firms, or governments regarding allocation of scarce resources to satisfy various needs and desires.