THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 19

Multiple Choice

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
The probability that interest rates on housing loans will go up in the next 6 months is estimated to be 0.20.The probability that house sales will decrease is estimated to be 0.6.The probability that interest rates will go up and house sales will decrease is estimated to be 0.15.
-The probability of an increase in interest rates and not a decrease in house sales is:

• A)0.20
• B)0.05
• C)0.25
• D)0.50

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Definitions:

Significance Level

The likelihood of mistakenly dismissing the null hypothesis, typically represented by alpha, when in truth it holds.

Null Hypothesis

A statement or hypothesis that assumes no statistical significance or effect exists in a set of observations or experiment.

Two-Tailed Test

A hypothesis test in which the critical area for a rejection of the null hypothesis is in both tails of the probability distribution, allowing for testing of deviations in both directions.

Population Mean

The average of all the values in a population, representing the central tendency of the total population.