Examlex
The main consideration in constructing a pro forma income statement is the costs specifically associated with units sold during the time period.
α
Denotes the level of significance in hypothesis testing; a threshold below which the p-value must fall for results to be considered statistically significant.
Type I Error
Occurs when a true null hypothesis is incorrectly rejected, falsely indicating that there is a significant effect when there is none.
Lowering Alpha
The process of reducing the alpha level, or the significance level, to decrease the likelihood of committing a Type I error in statistical hypothesis testing.
Type II Error
The error that occurs when a false null hypothesis is not rejected, implying a miss in detecting an actual effect or difference.
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