After Testing a Hypothesis, We Decided to Reject the Null

question 109

Multiple Choice

After testing a hypothesis, we decided to reject the null hypothesis. Thus, we are exposed to:

• A)Type I error.
• B)Type II error.
• C)Either Type I or Type II error.
• D)Neither Type I nor Type II error.

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Definitions:

Firm

An organization that sells goods or services in order to make a profit.

Industry

The organized economic activity connected with the production, manufacture, or construction of goods and services.

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Economies of Scale

Cost advantages reaped by companies when production becomes efficient, as the cost per unit of output decreases with increasing scale.