Type II Error Occurs When the Test

question 9

Multiple Choice

Type II error occurs when the test:

• A) correctly fails to reject an actually true null hypothesis.
• B) incorrectly fails to reject an actually false null hypothesis.
• C) correctly rejects an actually false null hypothesis.
• D) incorrectly rejects an actually true null hypothesis.

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Definitions:

Public Company Accounting Oversight Board (PCAOB)

A nonprofit corporation established by Congress to oversee the audits of public companies in order to protect the interests of investors.

Investment Company Act of 1940

A law that regulates investment companies and the activities they engage in, including mutual funds, to protect the interests of investors.

Mutual Funds

Investment programs funded by shareholders that trade in diversified holdings and are professionally managed.