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Which of the following statements is true with respect to a statistical decision and an economic decision? I). When in conflict, a statistical decision must override an economic decision since the former is an objective test. II). A statistical decision will always be objective whereas an economic decision may be subjective. III). If the statistical decision is not to reject the null, it simply implies that the sample results were inconclusive. IV). A statistical decision may easily be influenced by changing the level of significance of the test.
Correct Answer: C
I and II are incorrect since a statistical output could very well be manipulated by what's inputted into the test. Therefore, a decision must make both statistical and economic sense. III is incorrect because if the statistical decision is not to reject the null, it simply implies that the sample results were not strong enough to reject the null.