Examlex
If borrowers with the most risky investment projects seek bank loans in higher proportion to those borrowers with the safest investment projects,banks are said to face the problem of
Type II Error
The failure to reject a false null hypothesis or a false negative in hypothesis testing.
Significance Level
The significance level, denoted by alpha, is the threshold chosen by researchers below which a p-value must fall for results to be considered statistically significant.
Null Hypothesis
A statistical hypothesis that asserts there is no effect or no difference, and any observed deviation from this hypothesis is due to random variation.
Type II Error
A statistical error occurring when the null hypothesis is not rejected when it actually is false.
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