A Type II Error Occurs When

question 40

Multiple Choice

A type II error occurs when:

• A) the null hypothesis is incorrectly accepted when it is false
• B) the null hypothesis is incorrectly rejected when it is true
• C) the sample mean differs from the population mean
• D) the test is biased

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Definitions:

TR

Total Revenue, the total income received by a firm from sales before any expenses are subtracted.

TC

Total cost, which encompasses all the expenses associated with the production of goods or services, including both fixed and variable costs.

ATC

Average Total Cost, which is the total cost of production divided by the quantity of output produced.

AVC

Average Variable Cost; the total variable cost divided by the quantity of output produced.