Which of the Following Statements Is True About Performance Evaluation

question 66

Multiple Choice

Which of the following statements is true about performance evaluation in a multinational organization?

• A) A division that is performing poorly indicates that the manager of that division has performed poorly.
• B) Good performance by a division indicates that its manager has been performing to expectations.
• C) Divisional performance is the same as managerial performance.
• D) None of the above is true.

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Definitions:

Null Hypothesis

The null hypothesis is a statement in statistical inference that suggests there is no significant effect or no difference, serving as the default assumption to be tested.

Type I Error

The mistake of rejecting the null hypothesis when it is actually true, commonly referred to as a "false positive".

Beta

A symbol often representing the type II error rate in hypothesis testing, or a measure of risk exposure in finance.

Type II Error

A statistical error that occurs when one fails to reject a false null hypothesis.