Financial Risk Manager Part 1
Get started today
Ultimate access to all questions.
Comments
Loading comments...
Ultimate access to all questions.
Which of the following statements regarding hypothesis testing is correct?
A
Type II error refers to the failure to reject the H₁ when it is actually false.
B
Hypothesis testing is used to make inferences about the parameters of a given population on the basis of statistics computed for a sample that is drawn from another population.
C
All else being equal, the decrease in the chance of making a Type I error comes at the cost of increasing the probability of making a Type II error.
D
If the p-value is greater than the significance level, then the statistics falls into the reject intervals.