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NEW QUESTION: 1
A. Option D
B. Option C
C. Option A
D. Option B
Answer: D
NEW QUESTION: 2
Which of the following statements is false in reference to confidence intervals and/or tests of significance?
Choose the best answer.
A. All else equal, the confidence interval for a 1% significance level is larger than the confidence interval for a 5% significance level.
B. The confidence level is equal to the significance level.
C. The significance level is denoted by the Greek letter alpha.
D. The three conventional level of confidence are 0.10, 0.05, and 0.01.
E. The confidence level is typically equal to (1 - the probability of a Type II error).
F. More than one of these answers is incorrect.
Answer: F
Explanation:
Explanation/Reference:
Explanation:
More than one of these answers is correct. First, the confidence level is not equal to the significance level.
Rather the confidence level is equal to (1 - the significance level). Remember that the significance level of a test is used to quantify the probability of a Type I error, which is defined as the act of incorrectly rejecting the null hypothesis. For example, a confidence level of 95% implies a 5% probability of incorrectly rejecting the null hypothesis (i.e. a Type I error). For example, a hypothesis test associated with a 0.01 significance level indicates a 0.99 level of confidence. The second incorrect statement in this example is that the confidence level of a hypothesis test is found by (1 - alpha), where "alpha" is equal to the probability of a Type I error. Subtracting the probability of a Type II error from one will yield the power of the test. The remaining answers are all correct.
NEW QUESTION: 3
A risk assessment has identified increased losses associated with an IT risk scenario. It is MOST important for the risk practitioner to:
A. update the risk rating.
B. develop new risk scenarios.
C. implement additional controls.
D. reevaluate inherent risk.
Answer: A
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