Why Do Global Financial Crises Affect Development in the Developing

question 9

Multiple Choice

Why do global financial crises affect development in the developing world so severely?

• A) They usually cause a collapse in export-based economies.
• B) They usually mean that too much foreign investment flows into the developing world.
• C) They don't usually affect the developing world that much because of their removal from global finance.

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Definitions:

Type II Error

The error that occurs when the null hypothesis is not rejected when it is actually false, also known as a false negative result.

Type I Error

Mistakenly refusing a true null hypothesis, popularly known as a "false positive."

Nominal Data

Data that are categorized into distinct groups without implying any ranked order among them.

Confidence Level

The probability, expressed as a percentage, that the result of an experiment or study will fall within a specified range of values.