I the First Step in Testing a Hypothesis Is to State

question 99

Multiple Choice

i. The first step in testing a hypothesis is to state the decision rule. ii. To prevent bias, the level of significance is selected before setting up the decision rule and sampling the population.
iii. The fifth and final step in testing a hypothesis is taking a sample and, based on the decision rule, deciding if the null hypothesis should be rejected.

• A) (i), (ii), and (iii) are all correct statements.
• B) (i) is a correct statement but not (ii) or (iii).
• C) (i) and (iii) are correct statements but not (ii).
• D) (i) and (ii) are correct statements but not (iii).
• E) (ii) and (iii) are correct statements but not (i).

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Definitions:

Defective Corporation

A corporation that has not completely complied with all legal requirements for incorporation, but may still operate as a corporation under certain conditions.

Shareholder Manager

A shareholder who also plays a direct role in the management of a company.

Passive Shareholder

An investor who holds a stake in a company but does not take part in day-to-day management or operational decisions.

Authorized Shares

Shares that a corporation is empowered to issue by its articles of incorporation.