A Researcher Computes a Test Statistic and Finds That the P

question 2

Multiple Choice

A researcher computes a test statistic and finds that the p value for this test is .03.What does this result mean?

• A) There is a 3% likelihood of obtaining the test statistic value, if the null were true.
• B) The probability of committing a Type I error if we retain the null hypothesis is 3%.
• C) The probability of committing a Type II error if we reject the null hypothesis is 3%.
• D) There is a 3% likelihood that the researcher's hypothesis is correct.

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Definitions:

Accounts Payable Period

The duration it takes for a company to pay off its supplier invoices.

Accounts Receivable Period

The typical period a firm takes to collect receivables from its clients.

Cash Cycle

The period between the outlay of cash for raw materials and receiving cash from customer payments, essentially measuring the time it takes for a company to turn its inventory into cash.

Compensating Balance

A minimum account balance that a borrower must maintain in a bank as a condition for obtaining a loan, often used to offset a portion of the bank's lending costs.