The Probability of Correctly Rejecting a False Null Hypothesis Is

question 44

True/False

The probability of correctly rejecting a false null hypothesis is called the power of the decision-making process.

---

Definitions:

Required Return

The minimum rate of return on an investment necessary to compensate the investor for the level of risk assumed.

Overall Return

The total gain or loss experienced on an investment over a given period, taking into account capital gains, dividends, and interest.

Market Risk

This is the risk of losses in investments due to factors that affect the overall performance of the financial markets.

Probability Distribution

A listing, chart, or graph of all possible outcomes, such as expected rates of return, with a probability assigned to each outcome.