RESEARCH METHODOLOGY

STATISTICAL TECHNIQUES AND TOOLS

TESTS OF SIGNIFICANCE

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
What is the probability of mistakenly failing to reject a false Ho when a hypothesis test is being conducted at the 5% significance level (at 0.05)?
A
0.025
B
0.05
C
0.10
D
There is insufficient information to answer this question
Explanation: 

Detailed explanation-1: -Notice that P(Reject Ho | Ho is False) = 1 – P(Fail to Reject Ho | Ho is False) = 1 – = 1-beta. The POWER of a hypothesis test is the probability of rejecting the null hypothesis when the null hypothesis is false. This can also be stated as the probability of correctly rejecting the null hypothesis.

Detailed explanation-2: -Answer and Explanation: The probability that a false null hypothesis is rejected correctly is 0.80. The significance level is 0.05.

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