The Risk We Take in Rejecting a True Null Hypothesis

question 22

Multiple Choice

The risk we take in rejecting a true null hypothesis is called ______.

• A) significance or alpha ( α)
• B) assumption of null hypothesis
• C) statistical power
• D) type II error

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Definitions:

Variable Expenses

Costs that change in proportion to business activity or production volume, such as materials costs, direct labor, and utilities for machinery.

Minimum Required Rate Of Return

The lowest acceptable return on an investment, used as a benchmark for evaluating potential investments.

Average Operating Assets

This refers to the average value of the assets used in operations over a certain period, which can indicate the efficiency of asset use in generating income.

Sales

The revenue generated from the selling of goods or services by a company or an enterprise to its customers.