I Two Types of Possible Errors Always Exist When Testing

question 27

Multiple Choice

i. Two types of possible errors always exist when testing hypotheses-a Type I error, in which the
Null hypothesis is rejected when it should not have been rejected, and a Type II error in which the
Null hypothesis is not rejected when it should have been rejected.
ii. A test statistic is a value determined from sample information collected to test the null hypothesis.
iii. If we do not reject the null hypothesis based on sample evidence, we have proven beyond doubt
That the null hypothesis is true.

• 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) (i), (ii), and (iii) are all false statements.

---

Definitions:

Income Statement

A financial report that shows a company's revenues, expenses, and profits over a specific accounting period.

E-Commerce

The use of the Internet for performing business transactions.

Subsidiary Ledgers

Detailed records that support summary-level data contained in the general ledger, such as accounts receivable and accounts payable ledgers.

General Ledger

A complete record of all financial transactions over the life of a company.