The Standard Deviation of the Returns on IBM from 1996

question 80

Multiple Choice

The standard deviation of the returns on IBM from 1996 to 2005 is closest to:

• A) 33.2%
• B) 16.4%
• C) 31.5%
• D) 11.0%

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Definitions:

Type I Error

The error that occurs when a true null hypothesis is incorrectly rejected, falsely indicating a statistically significant effect.

Type I Error

The error of rejecting a true null hypothesis, also known as a "false positive" error.

Type II Error

Failing to detect an effect or difference that exists because the null hypothesis was incorrectly accepted.

α

Alpha (α) is a threshold value used in hypothesis testing to determine the significance level at which the null hypothesis can be rejected.