Question: 1.Type 2 error is when the null hypothesis is right but the test rejects it. True False 2. A lower significance level, i.e. a larger

1.Type 2 error is when the null hypothesis is right but the test rejects it.

True

False

2. A lower significance level, i.e. a larger , means the null hypothesis is more likely to be rejected.

Group of answer choices

False

True

Which of the following statements regarding exponential smoothing is not true?

Group of answer choices

A.None of these answers.

B.The smoothing parameter should always be between 0 and 1.

C.It requires an initial condition.

D.Only recent observations are used.

e.Recent observations receive more weight than older observations

4.The following partially completed table contains monthly volatility of banking stocks from Jun to Aug. Calculate the level and trend parameters in Holts method for Aug with = 0.4 and = 0.2. Keep two decimals in all calculation.

Month	Volatility (%)	L_t	T_t
June	6.72	6.72	0
July	7.52
Aug	8.20

Group of answer choices

a. None of these answers.

B.L_Aug = 7.37, T_Aug = 0.12.

c. L_Aug = 6.86, T_Aug = 0.08.

D. L_Aug = 6.43, T_Aug = 0.

E. L_Aug = 7.04, T_Aug = 0.06.

5.Compare a test H₀: = 5 vs H₁: 5 with a test H₀: 5 vs H₁: > 5, using the same sample and the same significance level. Assuming the sample mean is greater than 5, if H₀: 5 is rejected, does it imply that H₀: = 5 is also rejected? Explain why.

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