Mark the following statements TRUE or FALSE

(A) A 95% confidence interval will be smaller than a 90%

confidence interval.

(B) A positive sign test is one-tailed.

(C) A negative sign test is two-tailed.

(D) A test of significance is two-tailed.

(E) k = 2 in WHYi = ˆ + ˆ EX + e 0 1 i i.

(F) The higher the critical level of the test, the less chance there is that the test will result in a TYPE II error.

(G) A coefficient that is significant at the 1% critical level may not be significant at the 2% critical level.

(H) If the critical level of a hypothesis test is 5%, then the probability of committing a Type II error is 95%.

(I) If the p-value is less than 0.05, then the hypothesis test will reject Ho at the 5% critical level.

(J) If a test of significance results in “Reject Ho,” then the p-value for the test must be greater than 0.05.