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:

Annual Percentage Rate

The cost of borrowing or the yield from an investment, expressed as a single percentage number that represents the yearly cost over the term of a loan or income from an investment.

Interest Rate

The payment, specified as a percentage of the principal, necessitated by a lender from a borrower for employing assets.

Required By Law

Mandated actions or procedures as stipulated by legislation or legal statutes.

Compounded Annually

The process of calculating interest on both the initial principal and the accumulated interest from previous periods, applied once per year.