In Hypothesis Testing, the Term Critical Value Refers To

question 91

Multiple Choice

In hypothesis testing, the term critical value refers to:

• A) the probability, 1 -, of avoiding the Type I error of erroneously rejecting a null hypothesis that is in fact true
• B) the value of a test statistic that divides all possible values into an acceptance region and a rejection region
• C) the probability, 1 -, of avoiding the Type O error of erroneously rejecting a null hypothesis that is in fact true
• D) any sample result that leads to the continued acceptance of the null hypothesis because it has a high probability of occurring when the null hypothesis is true
• E) the probability, 1 -, of avoiding the Type II error of erroneously accepting a null hypothesis that is in fact false

---

Definitions:

Stock Split

An action by a company to divide its existing shares into multiple shares to boost the liquidity of the shares, although the overall value of the company does not change.

Market Value

The current price at which an asset or service can be bought or sold in an open market.

Treasury Stock

Shares of a company's own stock that it has reacquired from shareholders and held in the company's treasury, reducing the amount of outstanding stock.

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities, representing shareholders' ownership interest.