The Probability of Type I Error Is

question 52

Multiple Choice

The probability of Type I error is

• A).01.
• B).05.
• C)the alpha level.
• D)beta.

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Definitions:

Interest Rate

The amount charged by lenders to borrowers for the use of money, expressed as a percentage of the principal, usually on an annual basis.

Loanable Funds

The funds in financial institutions that are available for borrowing.

Higher Interest Rate

An increased percentage charged on borrowed money or paid on savings and investments.

Public Saving

Public saving refers to the surplus of government revenues over government spending. It's a component of national savings along with private savings.