What Is the Purpose of Using Yates's Continuity Correction

question 15

Multiple Choice

What is the purpose of using Yates's continuity correction?

• A) It reduces the probability of Type I error.
• B) It reduces the probability of Type II error.
• C) It makes the test more liberal.
• D) It corrects for error in large samples.

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Definitions:

Preferred Dividends

Preferred dividends are payments made to preferred shareholders before any dividends are paid to common shareholders, typically at a fixed rate.

Operating Expenses

Costs associated with the day-to-day functions of a business, excluding the cost of goods sold.

Cost of Goods Sold

An expense reported on the income statement that represents the total cost of products or services that have been sold.

Retained Earnings

Accumulated profits of a company that are not distributed to shareholders as dividends but are reinvested in the business or held as reserves.