What Is the Meaning of Testing a Hypothesis at an Alpha

question 25

Multiple Choice

What is the meaning of testing a hypothesis at an alpha level of 0.05?

• A)There is 95% confidence that the observed results are due to sampling error
• Or because of sample randomness.
• B)The chances of not rejecting the null hypothesis when it is false is more
• Than 5%.
• C)There is a 95% chance that the observed result from the sample analysis will also occur in the population.
• D)The probability of committing a Type II error is about 5%.
• E)There is 95% chance of a gamma error.

---

Definitions:

Doll Houses

Miniature houses designed for children to play with, often replicating the structure and furnishings of a full-size house.

Labor Cost

The total expenditures for wages, benefits, and payroll taxes that employers incur in compensation for the work performed by their employees.

Derived Demand

The demand for a resource; it stems from the demand for the final good the resource helps produce.

Input Demand

The requirement for resources and materials necessary to produce goods and services.