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An organization decided to install a motion detection system in its warehouse to protect against after-hours theft. According to the COSO enterprise risk management framework, which of the following best describes this risk management strategy?
Critical Value
A point on the scale of the test statistic beyond which we reject the null hypothesis; it depends on the chosen level of significance.
Test Statistic
A standardized value used in hypothesis testing to determine how far a sample statistic diverges from what is assumed in the null hypothesis.
Sample Evidence
Data collected from a sample that is used to make inferences or conclusions about a larger population.
Level Of Significance
A predetermined threshold of probability below which the null hypothesis is rejected in hypothesis testing, typically set at 0.05 (5%).
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