(iii) Comment on the following statement: If we reject the null hypothesis at le
ID: 3437285 • Letter: #
Question
(iii) Comment on the following statement: If we reject the null hypothesis at level of significance , we have not proved H0 to be false. We can say that the probability is that we made a mistake in rejecting Ho. Based on the outcome of the test, would you recommend further investigation before accusing the company of fraud?
We have not proved H0 to be false. Because our data lead us to reject the null hypothesis, more investigation is not merited.
We have proved H0 to be false. Because our data lead us to reject the null hypothesis, more investigation is not merited.
We have not proved H0 to be false. Because our data lead us to reject the null hypothesis, more investigation is merited.
We have not proved H0 to be false. Because our data lead us to accept the null hypothesis, more investigation is not merited.
Explanation / Answer
We have not proved H0 to be false. Because our data lead us to reject the null hypothesis, more investigation is merited. (typically post hoc analysis)
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