When It Comes to Significance Testing, the Level of Risk

question 66

Multiple Choice

When it comes to significance testing, the level of risk is ______.

• A)determined by sample size
• B)always set at .05
• C)set by the researcher
• D)irrelevant for t-test

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Definitions:

Crowding-Out Effect

Describes a situation in economics where increased public sector spending reduces or eliminates private sector spending, often due to higher interest rates or borrowed funds.

Private Saving

The portion of individual or household income that is not spent on consumption but saved for future use.

Private Investment

The expenditure by businesses on capital goods, such as machinery and buildings, and changes in inventories.

Crowding-Out Effect

A situation where increased government spending leads to a reduction in private sector investment.