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John Jenkins, CFA, is performing a study on the behavior of the mean P/E ratio for a sample of small-cap companies. Which of the following statements is most accurate? A. One minus the confidence level of the test represents the probability of making a Type II error. B. The significance level of the test represents the probability of making a Type I error. C. A Type I error represents the failure to reject the null hypothesis when it is, in truth, false. |