In a Two-Tail Test for the Population Mean,if the Null

question 184

Multiple Choice

In a two-tail test for the population mean,if the null hypothesis is rejected when the alternative hypothesis is true:

• A)a Type I error is committed.
• B)a Type II error is committed.
• C)a correct decision is made.
• D)a one-tail test should be used instead of a two-tail test.

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Definitions:

Maturity

The date on which the principal amount of a loan, bond, or other financial instrument becomes due and payable.

Arbitrage

The practice of buying and selling equivalent assets in different markets to take advantage of a price difference.

Law of One Price

An economic theory that states that in efficient markets, identical goods must have only one price when prices are expressed in a common currency, absent any transaction costs and tariffs.

Treasury Bond

A long-term, interest-bearing security issued by the U.S. government.