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The efficiency frontier has a convex shape because of
Type II Error
The failure to reject a false null hypothesis, also known as a "false negative."
Null Hypothesis
A statement or hypothesis in statistical inference that implies no effect or no difference, and it serves as the default or starting assumption for hypothesis testing.
Type I Error
Erroneously rejecting a valid null hypothesis, which is also known as a "false positive."
Null Hypothesis
A hypothesis that suggests there is no statistical significance between the two variables being studied.
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