The Level of Significance (Significance Criterion) of a Statistical Test

question 27

Multiple Choice

The level of significance (significance criterion) of a statistical test:

• A) Is the power of the test to reject the null when it is false
• B) Is a probability level, typically .05
• C) Is a probability level, typically .95
• D) Is automatically computed when tests are performed by computer

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Definitions:

Foreign Marketplace

An external market outside of one’s own country where goods, services, and financial instruments are traded.

Customs Union

An agreement between two or more countries to remove trade barriers and reduce tariffs among them, and to establish a common external tariff against other countries.

Common External Tariff

A uniform tariff rate adopted by a customs union or common market on imports from countries outside the union.

Free Trade Area

A region where member countries have agreed to reduce or eliminate trade barriers, such as tariffs and quotas, among themselves.