The Error of Rejecting a True Null Hypothesis Is

question 61

Multiple Choice

The error of rejecting a true null hypothesis is

• A) a Type I error.
• B) a Type II error.
• C) always negligible in hypothesis testing.
• D) never committed in hypothesis testing.

---

Definitions:

Usury Law

Legislation that sets a maximum interest rate that may be charged on loans to prevent predatory lending practices.

Shortage

A situation where the demand for a product or service exceeds the available supply, often leading to higher prices.

Loanable Funds

The money available for borrowing, which comes from savings in the economy and influences interest rates through supply and demand dynamics.

Interest Rate

The cost of borrowing money, typically expressed as an annual percentage of the principal.