If a Test of Hypothesis Has a Type I Error

question 24

Multiple Choice

If a test of hypothesis has a Type I error probability of .05,this means that:

• A)if the null hypothesis is true,we don't reject if 5% of the time.
• B)if the null hypothesis is true,we reject it 5% of the time.
• C)if the null hypothesis is false,we don't reject it 5% of the time.
• D)if the null hypothesis is false,we reject it 5% of the time.

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Definitions:

Top Management

The highest level of management in an organization, including positions such as CEO, CFO, and COO, responsible for overall strategy and direction.

Budgeting Benefits

The advantages of budgeting, including improved financial management, planning, and control, as well as enhanced decision-making.

Operating Budgets

Financial plans that outline the projected revenue and expenses for the day-to-day operations of an organization.

Budgeted Income Statement

A financial statement that shows projected revenues, costs, expenses, and net income for a specific period of time.