The Power of the Test Is

question 49

Multiple Choice

The power of the test is

• A)dependent on whether you calculate a t or a t² statistic.
• B)one minus the probability of committing a type I error.
• C)a subjective view taken by the econometrician dependent on the situation.
• D)one minus the probability of committing a type II error.

---

Definitions:

Land

A natural resource or plot of ground that is owned or controlled and can be used for building, farming, or other purposes.

Balance Sheet

A financial statement that reports a company's assets, liabilities, and shareholders' equity at a specific point in time, giving a snapshot of its financial condition.

Fixed Asset

A long-term tangible piece of property or equipment that a company uses in generating income and is not expected to be consumed or converted into cash within a year.

Current Asset

A current asset is any asset likely to be converted into cash within a year during the normal course of a business.