Type I errors are (Multiple Choice)

Type I errors are
 a. False negatives
  b. False positives
  c. True negatives
  d. True positives

QUESTION 2

A market maker faces the following demand and supply for widgets. Eleven buyers are willing to buy at the following prices: 15, 14, 13, 12, 11, 10, 9, 8, 7, 6, 5 . Eleven sellers are also willing to sell at the same prices. If the market maker bought and sold at the equilibrium price, what is his profit
 a. 1
 b. 2.5
  c. 3
 d. 0

QUESTION 3

Which types of poor decisions are more visible to a decision maker's supervisor?
 a. Agreeing to undertake an unprofitable project
 b. Deciding not to undertake a profitable project
 c. Deciding not to undertake an unprofitable project
 d. Deciding to investigate a proposed project until one is certain

QUESTION 4

A market maker faces the following demand and supply for widgets. Eleven buyers are willing to buy at the following prices: 15, 14, 13, 12, 11, 10, 9, 8, 7, 6, 5 . Eleven sellers are also willing to sell at the same prices. What is the equilibrium quantity in the market
 a. 5 units
  b. 6 units
  c. 7 units
  d. 8 units

QUESTION 5

A manager may over-research the appropriateness of a decision
 a. Because the costs of a false positive are usually larger
 b. Because the costs of a false negative are usually larger
 c. Because it is important to be 100 certain before making a decision
 d. Because managers can face inordinate censure from agreeing to a bad decision

QUESTION 6

A market maker faces the following demand and supply for widgets. Eleven buyers are willing to buy at the following prices: 15, 14, 13, 12, 11, 10, 9, 8, 7, 6, 5 . Eleven sellers are also willing to sell at the same prices. What is the equilibrium price in the market without the market maker
 a. 12
  b. 11
  c. 10
  d. 9

QUESTION 7

We worry that false negatives occur too often relative to false positives due to
 a. Most hypotheses being false
 b. It being appropriate to set a high standard for acceptance of a hypothesis
 c. Managers having an incentive to make a false negative conclusion because they are harder for superiors to observe
  d. They are not too common