If a Test of Hypothesis Has a Type I Error

question 24

Multiple Choice

If a test of hypothesis has a Type I error probability of .05,this means that:

• A)if the null hypothesis is true,we don't reject if 5% of the time.
• B)if the null hypothesis is true,we reject it 5% of the time.
• C)if the null hypothesis is false,we don't reject it 5% of the time.
• D)if the null hypothesis is false,we reject it 5% of the time.

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Definitions:

Bank Loan

A sum of money lent at interest by a bank to a borrower, usually on collateral security, for a certain period.

Collection Float

The time period between when a check is deposited and when the funds are made available.

Chequing Account

A bank account from which money can be withdrawn without notice, typically used for day-to-day spending and bill payments.

Deposit

A deposit refers to a sum of money placed into an account or given to another party as security for future transactions, often used in banking, leasing, and rental agreements.