A Type II Error Is Committed When

question 69

Multiple Choice

A Type II error is committed when

• A) a true alternative hypothesis is mistakenly rejected.
• B) a true null hypothesis is mistakenly rejected.
• C) the true null hypothesis is correctly rejected.
• D) the true alternative hypothesis is correctly rejected.

---

Definitions:

Deadweight Loss

A loss of economic efficiency that occurs when the equilibrium for a good or service is not achieved or is not achievable.

Average Cost Price

The average cost price is the total cost of production divided by the number of units produced, showing the average expense for each unit.

Profit or Loss

The financial outcome of an enterprise's operations, where profit results from revenues exceeding expenses and loss occurs when expenses surpass revenues.

Perfect Price Discrimination

A pricing strategy where a seller charges the maximum possible price for each unit consumed, extracting the maximum consumer surplus.