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Explain How Habitual Decision Making Works

question 11

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Explain how habitual decision making works.


Definitions:

Test Statistic

A calculated value from sample data that is used in a hypothesis test to decide whether to reject the null hypothesis.

Level of Significance

A criterion for judging the strength of evidence provided by the data against the null hypothesis, often denoted by alpha.

Significance Level

The probability of rejecting the null hypothesis in a statistical test when it is actually true, used to assess the evidence against the null hypothesis.

Type I Error

The error that occurs in hypothesis testing when a true null hypothesis is incorrectly rejected, often referred to as a "false positive."

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