The Critical Probability of Choosing Between the Null Hypothesis and the Alternative

question 8

Multiple Choice

The critical probability of choosing between the null hypothesis and the alternative hypothesis is called the:

• A) critical value.
• B) significance level.
• C) Chi-square test.
• D) degrees of freedom.

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Definitions:

Payment Default

The failure to make a required payment on a loan or other debt obligation by the due date.

Loan Covenants

Agreements between a borrower and a lender that the borrower must comply with to remain in good standing.

Principal and Interest

The original amount of a loan (principal) combined with the cost of borrowing that money (interest).

Financial Covenants

Agreements between a borrower and lender setting specific financial ratios or milestones the borrower must maintain.