If a Hypothesis Is Rejected at a 5% Level of Significance

question 44

Multiple Choice

If a hypothesis is rejected at a 5% level of significance, it _____.

• A) will always be rejected at the 1% level
• B) will always be accepted at the 1% level
• C) will never be tested at the 1% level
• D) may be rejected or not rejected at the 1% level

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Definitions:

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency of the business.

Dividend

A portion of a company's earnings, decided by the board of directors, to be distributed among shareholders, typically in the form of cash payments or additional shares.

Net Profits

The amount of money left over after all expenses, taxes, and deductions are subtracted from a company's total revenue.

Compensating Balance

A minimum account balance that a company agrees to maintain in a bank in return for banking services.