We Are About to Test a Hypothesis Using Data from a Well-Designed

question 111

Multiple Choice

We are about to test a hypothesis using data from a well-designed study. Which is true?
I. A small P-value would be strong evidence against the null hypothesis.
II. We can set a higher standard of proof by choosing $\alpha = 10 \% \text { instead of } 5 \%$
III. If we reduce the alpha level, we reduce the power of the test.

• A) none of these
• B) I only
• C) III only
• D) II only
• E) I and III only

---

Definitions:

Depreciation Expense

The distribution of a physical asset's cost across its lifespan, mirroring its depreciation over time.

Tax Rate

The proportion of income or the value of a transaction that is collected by the government as tax, expressed as a percentage.

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenue, indicating the company's actual profitability.

Income Statement

A record detailing a firm's income, costs, and gains during a particular timeframe.