The Power of the Test

question 56

Multiple Choice

The power of the test

• A)is the probability that the test actually incorrectly rejects the null hypothesis when the null is true.
• B)depends on whether you use or 2 for the t-statistic.
• C)is one minus the size of the test.
• D)is the probability that the test correctly rejects the null when the alternative is true.

---

Definitions:

Productivities

The levels of output or efficiency achieved from a set amount of inputs in production or work processes.

Profit-Maximizing

The process where a firm adjusts its production to achieve the highest possible profit given its constraints.

Labor (L)

A measure of the work done by human beings in the production process, considered a factor of production in economics.

Profit-Maximizing

The process businesses follow aiming to achieve the highest possible profits by adjusting production levels, pricing, and other operational factors.