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NEW QUESTION: 1
A. Option B
B. Option C
C. Option D
D. Option A
Answer: A
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. More than one of these answers is incorrect.
B. All else equal, the confidence interval for a 1% significance level is larger than the confidence interval for a 5% significance level.
C. The significance level is denoted by the Greek letter alpha.
D. The confidence level is typically equal to (1 - the probability of a Type II error).
E. The three conventional level of confidence are 0.10, 0.05, and 0.01.
F. The confidence level is equal to the significance level.
Answer: A
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. develop new risk scenarios.
B. update the risk rating.
C. implement additional controls.
D. reevaluate inherent risk.
Answer: B
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