In Hypothesis Testing, If the Null Hypothesis Has Been Rejected

question 42

Multiple Choice

In hypothesis testing, if the null hypothesis has been rejected when the alternative hypothesis has been true,

• A) a Type I error has been committed.
• B) a Type II error has been committed.
• C) either a Type I or a Type II error has been committed.
• D) the correct decision has been made.

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Definitions:

Net Loss

Occurs when a company's expenses exceed its revenues during a specific period, leading to a negative profit.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and profits or losses.

Revenues

The total amount of income generated by the sale of goods or services related to the company's primary operations.

Expenses

Costs incurred in the process of earning revenue, including operational, administrative, and marketing costs.