I If the Critical Values of the Test Statistic Z

question 46

Multiple Choice

i. If the critical values of the test statistic z are ±1.96, they are the dividing points between the areas of rejection and non-rejection.
Ii) The probability of a Type I error is also referred to as alpha.
Iii) A Type I error is the probability of accepting a true null hypothesis.

• A) (i), (ii) and (iii) are all correct statements
• B) (i) is a correct statement but not (ii) or (iii).
• C) (i) and, (iii) are correct statements but not (ii).
• D) (i) and, (ii) are correct statements but not (iii).
• E) All statements are false

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Definitions:

Opportunity Cost

Opportunity cost is the cost of foregoing the next best alternative when making a decision, representing the benefits that could have been gained by choosing the alternative option.

Opportunity Cost

The expense associated with not choosing the second-best option when deciding.

Opportunity Cost

The value of the next best alternative foregone as a result of making a decision.

Point E

typically used in the context of graphs, it can represent a specific equilibrium point or any designated point of interest.