If We Want to Compute the Probability of a Type

question 65

Multiple Choice

If we want to compute the probability of a Type II error, which of the following statements is false?

• A)We need to know the significance level a .
• B)We need to know the sample size n .
• C)We need to know the alternative value of the population mean m .
• D)All of these choices are true.

---

Definitions:

Debt Securities

Financial instruments representing a loan made by an investor to a borrower, typically including terms for interest payments and the return of principal.

Liquidity Risk

The risk arising from the difficulty of selling an asset without causing a significant movement in its price and losing value.

Stock Exchange

A marketplace where securities, including stocks and bonds, are bought and sold by traders.

Dark Pools

Private financial forums or exchanges for trading securities, not accessible by the investing public, often utilized by large institutional investors to facilitate block trades without impacting the market with their large orders.