Accepting a Null Hypothesis When It Is False Is Called

question 12

Multiple Choice

Accepting a null hypothesis when it is false is called an)

• A)type I error.
• B)type II error.
• C)hypothesis error.
• D)power of the test.
• E)significance level.

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Definitions:

Current Ratio

A liquidity ratio calculated as current assets divided by current liabilities, indicating the ability of a company to pay short-term obligations.

Current Liabilities

Debts or obligations that a company expects to pay off within one fiscal year, including accounts payable, short-term loans, and accrued expenses.

Current Assets

Assets that a company expects to convert into cash, sell, or use up within one year or within its operating cycle if longer than a year.

Reversing Entries

Journal entries made at the beginning of an accounting period to reverse or cancel out adjusting entries made at the end of the previous period.