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Identify the risk and the return in each of the following examples:
A.Investing $500 in a CD at 4.5% interest.
B.Placing a $100 bet on an NBA game.
C.Investing $10,000 in Microsoft stock.
D.Borrowing $20,000 in student loans.
Null Hypothesis
A default hypothesis that there is no significant difference or relationship between specified populations, or variables.
P-value
The chance of witnessing outcomes in a test that are as or more extreme than what was actually seen, assuming that the null hypothesis is true.
Significance Level
A threshold set by researchers in hypothesis testing that determines the probability of rejecting a true null hypothesis, often denoted by alpha (α).
Rejection Region
The region in the sampling distribution of a statistic that leads to the rejection of the null hypothesis.
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