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This Is Designed to Stop Speculative Insider Trading on the Basis

question 7

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This is designed to stop speculative insider trading on the basis of insider information.


Definitions:

α

A symbol often used to denote the probability of making a Type I error in hypothesis testing, representing the significance level.

Level of Significance

The probability threshold in hypothesis testing below which the null hypothesis is rejected, indicating statistical significance.

Type I Error

The mistake of rejecting the null hypothesis when it is actually true, often termed as a "false positive" in hypothesis testing.

Probability

A measure of the likelihood that an event will occur, expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

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