When Applying for a Loan of the Amount of $5000

question 39

Short Answer

When applying for a loan of the amount of $5000, you received the principal $5000 minus $500 as an interest, but you must pay back the entire principal. What is this type of loan called?

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Definitions:

Critical Value

A point on the scale of the test statistic beyond which the null hypothesis is rejected.

Null Hypothesis

A default hypothesis that there is no significant difference or relationship between specified populations, any observed effect is due to sampling or experimental error.

Type I Error

The statistical error that occurs when a true null hypothesis is incorrectly rejected.

Correct Decision

A conclusion or judgement that is accurate, based on the evaluation of evidence or data.