Interpret the Level of Statistical Significance for the Event Described

question 95

Multiple Choice

Interpret the level of statistical significance for the event described.
-A study of 600 college students taking Statistics 101 revealed that 59 students received the grade of A.
Typically 10% of the class gets an A. The difference between this group of students and the expected value is not significant at the 0.05 level. What does this mean in this case?

• A)The probability that the difference occurred due to chance is more than 0.05.
• B)The probability that the difference occurred due to chance is less than 0.05.
• C)There is not enough information to make any conclusion.
• D)The probability of getting an A is 10% and only 9% got an A in this study. The difference is less than 5% so it is not significant.

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Definitions:

Momentum Effects

The phenomenon where securities that have performed well in the past continue to perform well in the near future, and vice versa.

Resistance Level

The resistance level in trading is a price point above which a security or market is unlikely to rise, often leading to a sell-off when approached.

Support Level

A price level below which a stock or market rarely falls, representing a point where buying interest overcomes selling pressure.

Confidence Level

A statistical measure that represents the degree of certainty (or confidence) that a parameter lies within a specified range of values.