Which of the Following Combinations Would Result in a Type

question 32

Multiple Choice

Which of the following combinations would result in a Type II error? The null hypothesis is actually _______ and our decision in Step 5 is to ________ the null hypothesis.

• A) false, fail to reject
• B) false, reject
• C) true, fail to reject
• D) true, reject

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Definitions:

Direct Materials Price Variance

The difference between the actual cost of materials used in production and the expected (standard) cost.

Direct Materials

Raw materials that are consumed in the production process and can be directly traced to the end product.

Total Variable Overhead Variance

The difference between the expected and actual costs of variable overheads in a manufacturing or production process.

Variable Overhead

Costs that vary with the level of production output, such as materials, utilities, and commissions, contrary to fixed overheads.