Which of the Following Describes the Power of a Test

question 1

Multiple Choice

Which of the following describes the power of a test?

• A)It is the probability of making the correct decision when the alternative hypothesis is true.
• B)Bigger samples result in more power for the test, and smaller samples result in less power for the test.
• C)It is higher when the population value is farther from the value in the null hypothesis.
• D)All of the above.

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Definitions:

Required Return

The minimum expected return by investors for investing in a particular security or project, considering the risk involved.

Dividend

A share of profits paid by a company to its shareholders, typically on a regular basis.

ROE

Return on Equity, a measure of financial performance calculated by dividing net income by shareholders' equity, indicating how efficiently a company is using its equity to generate profits.

Dividend Growth Rate

The annualized percentage rate of growth that a particular stock's dividend undergoes over a period of time.