The Comparison Universe Is

question 11

Multiple Choice

The comparison universe is

• A) a concept found only in astronomy.
• B) the set of all mutual funds in the world.
• C) the set of all mutual funds in the U.S.
• D) a set of mutual funds with similar risk characteristics to your mutual fund.
• E) None of the options are correct.

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Definitions:

Type I Error

A Type I Error occurs when a true null hypothesis is incorrectly rejected, also known as a "false positive."

Statistical Power

Statistical power refers to the probability that a statistical test will correctly reject a false null hypothesis, effectively detecting an effect when there is one.

Detecting An Effect

The process of identifying whether a particular treatment, condition, or variable has a statistically significant impact in an experiment or study.

Type I Error

The error made in statistical hypothesis testing when a true null hypothesis is incorrectly rejected, commonly referred to as a "false positive."