A .05 Level of Significance Means That​

question 2

Multiple Choice

A .05 level of significance means that​

• A) ​there is only a 5% chance that the statistic's value could be obtained as a result of sampling errors only.
• B) ​one is 50% certain that the sample value is representative of the population.
• C) ​there is only a 5% chance that the variables tested are not independent.
• D) ​the results can be accepted because the sampling error is only 5%.
• E) the level of confidence is only 5%.​

Apply knowledge of simple interest to real-world business and personal finance situations.

Understand the concept of simple interest and its real-world application.

Calculate the period of a loan given the principal amount, total repayment, and interest rate.

Determine the exact simple interest rate given the loan amount, the total repayment amount, and the loan period.

---

Definitions:

Level of Significance

A threshold of probability set before testing hypotheses, below which the null hypothesis is rejected.

Treatments

Specific conditions applied to the participants or subjects in an experimental study.

Total

The sum of all values in a set of numbers.

Null Hypothesis

The default hypothesis that there is no significant difference or effect, serving as a starting point for statistical hypothesis testing.