METHODS OF DATA ANALYSIS
DECISION MAKING WITH HYPOTHESIS TESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Level of significance
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Null
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Critical value
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Statistical hypothesis
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Detailed explanation-1: -The probability of committing a type I error (rejecting the null hypothesis when it is actually true) is called (alpha) the other name for this is the level of statistical significance.
Detailed explanation-2: -Type I Errors vs. The difference between a type II error and a type I error is that a type I error rejects the null hypothesis when it is true (i.e., a false positive). The probability of committing a type I error is equal to the level of significance that was set for the hypothesis test.
Detailed explanation-3: -The standard level of significance is 0.05. If the level of significance is reduced (from 0.05 to 0.01), then the probability of making a Type I error (rejecting a true null hypothesis) decreases. This implies that we would reject less frequently the true null hypothesis.
Detailed explanation-4: -If the null hypothesis is true, then the probability of making a Type I error is equal to the significance level of the test. To decrease the probability of a Type I error, decrease the significance level. Changing the sample size has no effect on the probability of a Type I error.