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...is greater than 15%. Explain how a Type I and Type II errors could have been made.

- H(0) = d <= 15%, H(1) = u > 15%
- Type I: Concluding that the return is greater than 15% when in fact it's less than 15%.
- Type II: Going along with the return is less than 15% when in fact it's greater than 15%.

*Bonus Points*

- A Type I error is rejecting H0 when H0 is in fact true.
- A Type II error is failing to reject H0 when H0 is in fact false.
- "Going along" means you can't conclude nor reject it.

*Category: Quantitative Analysis*

*Category: C++ Quant > Finance*

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