Which of the Following Is True About the Level of Significance

question 38

Multiple Choice

Which of the following is true about the level of significance? The level of significance:

• A) ensures that findings will be correct 95% of the time if an alpha value of less than 0.05 is used.
• B) refers to a statistic calculated during computer analysis of data.
• C) represents the probability of getting a calculated statistic as high as the one found in the study if the null hypothesis is really true.
• D) represents the risk the researcher is willing to take in making a Type I error and is established before data are analyzed.

---

Definitions:

Equilibrium Price

The price at which the quantity of a product offered for sale matches the quantity that consumers are willing to buy, without any leftover surplus or shortage.

Collusion

Collusion is an agreement among firms in a market to coordinate actions to achieve a higher price or market control, resulting in less competition.

Oligopolistic Producers

Companies within an industry where a small number of firms hold a large market share, leading to limited competition.

Homogeneous Product

Goods that are perfectly identical in quality, style, and substance, making them indistinguishable from products produced by competing companies.