Which of These Statements About Statistical Power Is Not True

question 15

Multiple Choice

Which of these statements about statistical power is not true?

• A) Power is the ability of a test to detect an effect.
• B) We can use power to determine how big a sample is required to detect an effect of a certain size.
• C) Power is linked to the probability of making a Type I error.
• D) All of the above are true.

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Definitions:

Resources

Assets or inputs used to produce goods and services.

Economic Profit

The difference between a firm's total revenues and its total costs, including both explicit and implicit costs, indicating the financial gain in excess of opportunity costs.

Accounting Profit

The total revenue of a firm less its explicit costs; the profit (or net income) that appears on accounting statements and that is reported to the government for tax purposes.

Diseconomies of Scale

A situation in which a company or business grows so large that the costs per unit increase, leading to decreased efficiency.