Statistics for Business
What do Type I error and Type II error mean in hypothesis testing?
A scientist sets the significance level at 0.100.10 for a hypothesis test. What does this imply about the likelihood of rejecting the null hypothesis when it is actually true?
A researcher decides to change the significance level of their hypothesis test from α=0.05α=0.05 to α=0.01α=0.01. Assuming the sample size and true effect size remain the same, which of the following is the most likely consequence?
You draw 150150 simple random samples of size n=30n=30 from a population with true proportion p=0.2p=0.2. You perform a one-sided test H0:p=0.2H_0:p=0.2 versus Ha:p>0.2H_a:p>0.2 at α=0.01\(\alpha\)=0.01. Which description correctly identifies a Type I error in this simulation, and what is the approximate number of such errors expected among the 150150 samples?
A government agency must set a significance level for testing a safety device, as a false approval could endanger lives. Given the options α=0.10\(\alpha\)=0.10, α=0.05\(\alpha\)=0.05, and α=0.001\(\alpha\)=0.001, which should they pick and why?