Two researchers have identical models, data, coefficients and standard error estimates. They test the same hypothesis using a two-sided alternative, but researcher 1 uses a 5% size of test while researcher 2 uses a 10% test. Which one of the following statements is correct?
A) Researcher 2 will use a larger critical value from the t-tables
B) Researcher 2 will have a higher probability of type I error
C) Researcher 1 will be more likely to reject the null hypothesis
D) Both researchers will always reach the same conclusion.

Question

Quizplus · Accepted Answer

Researcher 2, using a 10% test, will have a higher probability of committing a Type I error (rejecting a true null hypothesis) compared to Researcher 1, who uses a 5% test. This is because a larger significance level (alpha) increases the critical value range for rejecting the null hypothesis, thus making it easier to reject.

Two Researchers Have Identical Models, Data, Coefficients and Standard Error