Q7. A Type II error: A) fails to reject a true null hypothesis. B) fails to reject a false null hypothesis. C) rejects a true null hypothesis.
Q8. If we fail to reject the null hypothesis when it is false, what type of error has occured? A) Type II. B) Type III. C) Type I.
Q9. Which of the following statements regarding hypothesis testing is least accurate? A) The significance level is the risk of making a type I error. B) A type I error is acceptance of a hypothesis that is actually false. C) A type II error is the acceptance of a hypothesis that is actually false.
Q10. A Type I error: A) rejects a false null hypothesis. B) rejects a true null hypothesis. C) fails to reject a false null hypothesis.
Q11. Which of the following statements regarding Type I and Type II errors is most accurate? A) A Type I error is failing to reject the null hypothesis when it is actually false. B) A Type I error is rejecting the null hypothesis when it is actually true. C) A Type II error is rejecting the alternative hypothesis when it is actually true.
Q12. A survey is taken to determine whether the average starting salaries of CFA charterholders is equal to or greater than $59,000 per year. What is the test statistic given a sample of 135 newly acquired CFA charterholders with a mean starting salary of $64,000 and a standard deviation of $5,500? A) 10.56. B) -10.56. C) 0.91.
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