If a Test of Hypothesis Has a Type I Error

question 131

Multiple Choice

If a test of hypothesis has a Type I error probability (α) of 0.01,it means that

• A)if the null hypothesis is true,you don't reject it 1% of the time.
• B)if the null hypothesis is true,you reject it 1% of the time.
• C)if the null hypothesis is false,you don't reject it 1% of the time.
• D)if the null hypothesis is false,you reject it 1% of the time.

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Definitions:

Disposable Income

The cash reserves left for households to spend and save after paying income taxes.

Disposable Income

Funds households have for saving and spending following the deduction of income taxes.

Disposable Income

Disposable income for households after accounting for income taxes, meant for spending and saving.

Marginal Propensity

The ratio of change in an economic variable, such as consumption or saving, to a change in another variable, like income.