SlideShare a Scribd company logo
1 of 1
Download to read offline
3. (10 Points) You are faced with an investment decision which is risky but the potential returns
are high. Let H0 be a low or normal return on the new investment. Ha is a high return. Discuss
the following. (a) Type I Error (b) Type II Error (c) Which is more serious and why?

More Related Content

More from alliedscorporation

3) �Qu� caracter�sticas de la industria deber�an influir en la estra.pdf
3) �Qu� caracter�sticas de la industria deber�an influir en la estra.pdf3) �Qu� caracter�sticas de la industria deber�an influir en la estra.pdf
3) �Qu� caracter�sticas de la industria deber�an influir en la estra.pdf
alliedscorporation
 
27. A continuaci�n se enumeran diez t�rminos seguidos de una lista d.pdf
27. A continuaci�n se enumeran diez t�rminos seguidos de una lista d.pdf27. A continuaci�n se enumeran diez t�rminos seguidos de una lista d.pdf
27. A continuaci�n se enumeran diez t�rminos seguidos de una lista d.pdf
alliedscorporation
 
4. Trudy fue contratada por Food Corporation para manejar una demand.pdf
4. Trudy fue contratada por Food Corporation para manejar una demand.pdf4. Trudy fue contratada por Food Corporation para manejar una demand.pdf
4. Trudy fue contratada por Food Corporation para manejar una demand.pdf
alliedscorporation
 
4. Desarrollar t�cnicas de redacci�n comercial Puede mejorar su me.pdf
4. Desarrollar t�cnicas de redacci�n comercial Puede mejorar su me.pdf4. Desarrollar t�cnicas de redacci�n comercial Puede mejorar su me.pdf
4. Desarrollar t�cnicas de redacci�n comercial Puede mejorar su me.pdf
alliedscorporation
 
22. 23. Some strains of Escherichia coli bact.pdf
22. 23.  Some strains of Escherichia coli bact.pdf22. 23.  Some strains of Escherichia coli bact.pdf
22. 23. Some strains of Escherichia coli bact.pdf
alliedscorporation
 

More from alliedscorporation (20)

3) �Qu� caracter�sticas de la industria deber�an influir en la estra.pdf
3) �Qu� caracter�sticas de la industria deber�an influir en la estra.pdf3) �Qu� caracter�sticas de la industria deber�an influir en la estra.pdf
3) �Qu� caracter�sticas de la industria deber�an influir en la estra.pdf
 
3)These are my Hypothesis 1. There is a positive impact of virt.pdf
3)These are my Hypothesis 1. There is a positive impact of virt.pdf3)These are my Hypothesis 1. There is a positive impact of virt.pdf
3)These are my Hypothesis 1. There is a positive impact of virt.pdf
 
3) Total parenteral nutrition (TPN) is a method of getting an indivi.pdf
3) Total parenteral nutrition (TPN) is a method of getting an indivi.pdf3) Total parenteral nutrition (TPN) is a method of getting an indivi.pdf
3) Total parenteral nutrition (TPN) is a method of getting an indivi.pdf
 
2�1+3�2=84�13�2=2 Use Excel to solve for x1,x2.pdf
2�1+3�2=84�13�2=2 Use Excel to solve for x1,x2.pdf2�1+3�2=84�13�2=2 Use Excel to solve for x1,x2.pdf
2�1+3�2=84�13�2=2 Use Excel to solve for x1,x2.pdf
 
27-�Qu� nivel de personal en una firma de CPC maneja la relaci�n gen.pdf
27-�Qu� nivel de personal en una firma de CPC maneja la relaci�n gen.pdf27-�Qu� nivel de personal en una firma de CPC maneja la relaci�n gen.pdf
27-�Qu� nivel de personal en una firma de CPC maneja la relaci�n gen.pdf
 
27 Todos los siguientes se consideran fallas o tropiezos en el desar.pdf
27 Todos los siguientes se consideran fallas o tropiezos en el desar.pdf27 Todos los siguientes se consideran fallas o tropiezos en el desar.pdf
27 Todos los siguientes se consideran fallas o tropiezos en el desar.pdf
 
27. A continuaci�n se enumeran diez t�rminos seguidos de una lista d.pdf
27. A continuaci�n se enumeran diez t�rminos seguidos de una lista d.pdf27. A continuaci�n se enumeran diez t�rminos seguidos de una lista d.pdf
27. A continuaci�n se enumeran diez t�rminos seguidos de una lista d.pdf
 
24. In 2020, Katrina filed her 2019 Form 1040. She mailed her extens.pdf
24. In 2020, Katrina filed her 2019 Form 1040. She mailed her extens.pdf24. In 2020, Katrina filed her 2019 Form 1040. She mailed her extens.pdf
24. In 2020, Katrina filed her 2019 Form 1040. She mailed her extens.pdf
 
21. Quantcast.com provides the number of people from the United Stat.pdf
21. Quantcast.com provides the number of people from the United Stat.pdf21. Quantcast.com provides the number of people from the United Stat.pdf
21. Quantcast.com provides the number of people from the United Stat.pdf
 
2022 FederalState Tax Practice Questions 1. TF. Wealth includes a.pdf
2022 FederalState Tax Practice Questions 1. TF. Wealth includes a.pdf2022 FederalState Tax Practice Questions 1. TF. Wealth includes a.pdf
2022 FederalState Tax Practice Questions 1. TF. Wealth includes a.pdf
 
21 Manuel es gerente de una empresa manufacturera en la que se esp.pdf
21 Manuel es gerente de una empresa manufacturera en la que se esp.pdf21 Manuel es gerente de una empresa manufacturera en la que se esp.pdf
21 Manuel es gerente de una empresa manufacturera en la que se esp.pdf
 
4. Recreate and complete each table.a.) True or Falseb. True or.pdf
4. Recreate and complete each table.a.) True or Falseb. True or.pdf4. Recreate and complete each table.a.) True or Falseb. True or.pdf
4. Recreate and complete each table.a.) True or Falseb. True or.pdf
 
4. Use the spreadsheet template in Table 7.11 to simulate a customer.pdf
4. Use the spreadsheet template in Table 7.11 to simulate a customer.pdf4. Use the spreadsheet template in Table 7.11 to simulate a customer.pdf
4. Use the spreadsheet template in Table 7.11 to simulate a customer.pdf
 
26) Because information is scarceA) helps explain why equity contr.pdf
26) Because information is scarceA) helps explain why equity contr.pdf26) Because information is scarceA) helps explain why equity contr.pdf
26) Because information is scarceA) helps explain why equity contr.pdf
 
4. Trudy fue contratada por Food Corporation para manejar una demand.pdf
4. Trudy fue contratada por Food Corporation para manejar una demand.pdf4. Trudy fue contratada por Food Corporation para manejar una demand.pdf
4. Trudy fue contratada por Food Corporation para manejar una demand.pdf
 
28 Aunque su desempe�o les dar�a la credibilidad necesaria para in.pdf
28 Aunque su desempe�o les dar�a la credibilidad necesaria para in.pdf28 Aunque su desempe�o les dar�a la credibilidad necesaria para in.pdf
28 Aunque su desempe�o les dar�a la credibilidad necesaria para in.pdf
 
4. Which of the following structurescomponents is associated with.pdf
4. Which of the following structurescomponents is associated with.pdf4. Which of the following structurescomponents is associated with.pdf
4. Which of the following structurescomponents is associated with.pdf
 
4. Desarrollar t�cnicas de redacci�n comercial Puede mejorar su me.pdf
4. Desarrollar t�cnicas de redacci�n comercial Puede mejorar su me.pdf4. Desarrollar t�cnicas de redacci�n comercial Puede mejorar su me.pdf
4. Desarrollar t�cnicas de redacci�n comercial Puede mejorar su me.pdf
 
4. Minsu became an international rock star after participating in Di.pdf
4. Minsu became an international rock star after participating in Di.pdf4. Minsu became an international rock star after participating in Di.pdf
4. Minsu became an international rock star after participating in Di.pdf
 
22. 23. Some strains of Escherichia coli bact.pdf
22. 23.  Some strains of Escherichia coli bact.pdf22. 23.  Some strains of Escherichia coli bact.pdf
22. 23. Some strains of Escherichia coli bact.pdf
 

Recently uploaded

Recently uploaded (20)

Interdisciplinary_Insights_Data_Collection_Methods.pptx
Interdisciplinary_Insights_Data_Collection_Methods.pptxInterdisciplinary_Insights_Data_Collection_Methods.pptx
Interdisciplinary_Insights_Data_Collection_Methods.pptx
 
Mehran University Newsletter Vol-X, Issue-I, 2024
Mehran University Newsletter Vol-X, Issue-I, 2024Mehran University Newsletter Vol-X, Issue-I, 2024
Mehran University Newsletter Vol-X, Issue-I, 2024
 
80 ĐỀ THI THỬ TUYỂN SINH TIẾNG ANH VÀO 10 SỞ GD – ĐT THÀNH PHỐ HỒ CHÍ MINH NĂ...
80 ĐỀ THI THỬ TUYỂN SINH TIẾNG ANH VÀO 10 SỞ GD – ĐT THÀNH PHỐ HỒ CHÍ MINH NĂ...80 ĐỀ THI THỬ TUYỂN SINH TIẾNG ANH VÀO 10 SỞ GD – ĐT THÀNH PHỐ HỒ CHÍ MINH NĂ...
80 ĐỀ THI THỬ TUYỂN SINH TIẾNG ANH VÀO 10 SỞ GD – ĐT THÀNH PHỐ HỒ CHÍ MINH NĂ...
 
HMCS Max Bernays Pre-Deployment Brief (May 2024).pptx
HMCS Max Bernays Pre-Deployment Brief (May 2024).pptxHMCS Max Bernays Pre-Deployment Brief (May 2024).pptx
HMCS Max Bernays Pre-Deployment Brief (May 2024).pptx
 
Sociology 101 Demonstration of Learning Exhibit
Sociology 101 Demonstration of Learning ExhibitSociology 101 Demonstration of Learning Exhibit
Sociology 101 Demonstration of Learning Exhibit
 
Application orientated numerical on hev.ppt
Application orientated numerical on hev.pptApplication orientated numerical on hev.ppt
Application orientated numerical on hev.ppt
 
Unit-V; Pricing (Pharma Marketing Management).pptx
Unit-V; Pricing (Pharma Marketing Management).pptxUnit-V; Pricing (Pharma Marketing Management).pptx
Unit-V; Pricing (Pharma Marketing Management).pptx
 
Google Gemini An AI Revolution in Education.pptx
Google Gemini An AI Revolution in Education.pptxGoogle Gemini An AI Revolution in Education.pptx
Google Gemini An AI Revolution in Education.pptx
 
Food safety_Challenges food safety laboratories_.pdf
Food safety_Challenges food safety laboratories_.pdfFood safety_Challenges food safety laboratories_.pdf
Food safety_Challenges food safety laboratories_.pdf
 
SKILL OF INTRODUCING THE LESSON MICRO SKILLS.pptx
SKILL OF INTRODUCING THE LESSON MICRO SKILLS.pptxSKILL OF INTRODUCING THE LESSON MICRO SKILLS.pptx
SKILL OF INTRODUCING THE LESSON MICRO SKILLS.pptx
 
Accessible Digital Futures project (20/03/2024)
Accessible Digital Futures project (20/03/2024)Accessible Digital Futures project (20/03/2024)
Accessible Digital Futures project (20/03/2024)
 
On National Teacher Day, meet the 2024-25 Kenan Fellows
On National Teacher Day, meet the 2024-25 Kenan FellowsOn National Teacher Day, meet the 2024-25 Kenan Fellows
On National Teacher Day, meet the 2024-25 Kenan Fellows
 
Making communications land - Are they received and understood as intended? we...
Making communications land - Are they received and understood as intended? we...Making communications land - Are they received and understood as intended? we...
Making communications land - Are they received and understood as intended? we...
 
Graduate Outcomes Presentation Slides - English
Graduate Outcomes Presentation Slides - EnglishGraduate Outcomes Presentation Slides - English
Graduate Outcomes Presentation Slides - English
 
Jamworks pilot and AI at Jisc (20/03/2024)
Jamworks pilot and AI at Jisc (20/03/2024)Jamworks pilot and AI at Jisc (20/03/2024)
Jamworks pilot and AI at Jisc (20/03/2024)
 
Unit 3 Emotional Intelligence and Spiritual Intelligence.pdf
Unit 3 Emotional Intelligence and Spiritual Intelligence.pdfUnit 3 Emotional Intelligence and Spiritual Intelligence.pdf
Unit 3 Emotional Intelligence and Spiritual Intelligence.pdf
 
Basic Civil Engineering first year Notes- Chapter 4 Building.pptx
Basic Civil Engineering first year Notes- Chapter 4 Building.pptxBasic Civil Engineering first year Notes- Chapter 4 Building.pptx
Basic Civil Engineering first year Notes- Chapter 4 Building.pptx
 
General Principles of Intellectual Property: Concepts of Intellectual Proper...
General Principles of Intellectual Property: Concepts of Intellectual  Proper...General Principles of Intellectual Property: Concepts of Intellectual  Proper...
General Principles of Intellectual Property: Concepts of Intellectual Proper...
 
Wellbeing inclusion and digital dystopias.pptx
Wellbeing inclusion and digital dystopias.pptxWellbeing inclusion and digital dystopias.pptx
Wellbeing inclusion and digital dystopias.pptx
 
HMCS Vancouver Pre-Deployment Brief - May 2024 (Web Version).pptx
HMCS Vancouver Pre-Deployment Brief - May 2024 (Web Version).pptxHMCS Vancouver Pre-Deployment Brief - May 2024 (Web Version).pptx
HMCS Vancouver Pre-Deployment Brief - May 2024 (Web Version).pptx
 

3. (10 Points) You are faced with an investment decision which is ris.pdf

  • 1. 3. (10 Points) You are faced with an investment decision which is risky but the potential returns are high. Let H0 be a low or normal return on the new investment. Ha is a high return. Discuss the following. (a) Type I Error (b) Type II Error (c) Which is more serious and why?