When You Accept the Null Hypothesis When the Null Hypothesis

question 22

Multiple Choice

When you accept the null hypothesis when the null hypothesis is really false, you are making a ______.

• A)Type I error
• B)Type II error
• C)Type III error
• D)Power

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Definitions:

New Common Shares

Issuance of additional shares of a company's stock, which can dilute existing shareholders' equity but raise new capital for the company.

Flotation Cost

The total costs that a company faces when it issues new securities, including underwriting fees, legal fees, and registration fees.

Retained Earnings

Cumulative net earnings not distributed as dividends to shareholders, but instead reinvested in the business.

Inflation

The pace at which prices for goods and services across the board go up, diminishing the value of money.