The Erroneous Acceptance of a Null Hypothesis That Is in Fact

question 28

Multiple Choice

The erroneous acceptance of a null hypothesis that is in fact false can have consequences such as:

• A) interrupting the production process in order to adjust machinery that needs no adjusting
• B) acquitting a guilty defendant in a criminal trial
• C) switching to a new supplier of raw material although the performance of the old one was satisfactory
• D) convicting a guilty defendant in a criminal trial
• E) condemning a firm for ignoring pollution standards even though it has done no such thing

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Definitions:

Six-month Moving Average

A method of smoothing data by calculating the average of six consecutive months' worth of data, continuously updated month by month.

Mean Absolute Deviation

A statistical measure of the average absolute deviations of a set of values from their mean, indicating variability within the dataset.

Forecast Error

The difference between the actual outcomes and the predictions made by forecasting models.

Exponential Smoothing

A time series forecasting method for smoothing data points by giving more weight to recent observations while exponentially decreasing the weights for older observations.