I to Prevent Bias, the Level of Significance Is Selected

question 57

Multiple Choice

i. To prevent bias, the level of significance is selected before setting up the decision rule and sampling the population. ii. 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.
iii. When the null hypothesis is not rejected, the conclusion is that our sample data does not allow us to reject the null hypothesis.

• 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) (i), (ii), and (iii) are all false statements.

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Definitions:

Expenses

Costs incurred by a business in the process of earning revenues, including utilities, rent, payroll, and materials.

Owner's Equity

The residual interest in the assets of the entity after deducting liabilities, representing the ownership interest in the company.

Beginning Assets

The value of all assets owned by a company at the start of a financial accounting period.

Ending Liabilities

The total amount of obligations and debts a company has at the end of an accounting period.