The Ability of a Statistical Test to Correctly Reject a False

question 8

Multiple Choice

The ability of a statistical test to correctly reject a false null hypothesis is called which of the following?

• A) Accuracy
• B) Power
• C) Precisions
• D) Reliability

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Definitions:

Marginal Benefit

The additional benefit derived from producing one more unit of a good or service.

Accounting Profit

The total revenue of a business minus its explicit costs; essentially the net income reported on the financial statements.

Economic Profit

The difference between the total revenue received by a business and the total costs, including both explicit and implicit costs.

Overhead

Ongoing business expenses not directly attributed to creating a product or service.