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Exam Code: CFE-Financial-Transactions-and-Fraud-Schemes
Exam Name: Certified Fraud Examiner - Financial Transactions and Fraud Schemes Exam
Vendor: ACFE

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NEW QUESTION: 3
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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.
A. IV only.
B. I and III.
C. II, III and IV.
Answer: A
Explanation:
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.


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