A Stock Split Merely Increases the Number of Shares of Stock;it

question 46

True/False

A stock split merely increases the number of shares of stock;it usually does not change retained earnings or paid-in capital.

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Definitions:

Incorrect Decision

A decision based on data analysis or hypothesis testing that incorrectly accepts the null hypothesis or wrongly rejects it, leading to a Type I or Type II error.

Type II Error

The error that occurs when a statistical test fails to reject a false null hypothesis; also known as a "false negative."

True Null Hypothesis

The assumption or premise that there is no effect, difference, or relationship between the variables being studied, which might be rejected or not rejected based on statistical analysis.

Rejecting

In statistical hypothesis testing, the act of concluding that the null hypothesis is unlikely given the data, often signaled by a test statistic that falls outside a specified significance level.