The Probability of a Type 2 Error Is Often Referred

question 73

Multiple Choice

The probability of a type 2 error is often referred to by using which Greek letter?

• A) Alpha
• B) Beta
• C) Kappa
• D) Omega

---

Definitions:

Average Daily Float

Indicates the average amount of un-cleared checks or unprocessed transactions in a company's bank account over a certain period, impacting the available balance.

Cheques

A method of payment that allows an individual to instruct their bank to pay a specific amount from their account to another party.

Daily Interest Rate

This is the interest rate applied to a loan or investment for a single day, often used in calculating accrued interest over a period.

Collection Float

The time difference between when a check is deposited and when the funds are available in the account, affecting the business’s cash flow.