Refer to the Information Provided in Figure 8

question 38

Multiple Choice

Refer to the information provided in Figure 8.1 below to answer the questions that follow. Figure 8.1
-Refer to Figure 8.1. This household's consumption function is

• A) C = 200 + 0.2Y.
• B) C = 300 + 0.75Y.
• C) C = 500 + 0.5Y.
• D) C = 1,000 + 0.2Y.

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Definitions:

Type II Error

Occurs when a false null hypothesis is not rejected.

Statistical Power

The probability that a statistical test will correctly reject a false null hypothesis, a measure of a test's ability to detect an effect if there is one.

Type II Error

The error made by failing to reject a false null hypothesis, also known as a "false negative."

Type I Error

The mistaken dismissal of an accurate null hypothesis, frequently referred to as a false positive.