Conventional levels of significance have been set at 5% and 1% in order to:
A)maximally protect against Type I error
B)maximally protect against Type II error
C)compromise between the risk of a Type I and Type II error
D)none of the above; these levels were set historically in an arbitrary way without regard to issues associated with Type I or Type II error

Question

Quizplus · Accepted Answer

Conventional levels of significance, such as 5% and 1%, are chosen as a compromise between the risk of committing a Type I error (falsely rejecting a true null hypothesis) and a Type II error (failing to reject a false null hypothesis). These levels balance the desire to avoid false positives while still having a reasonable chance of detecting true effects.

Conventional Levels of Significance Have Been Set at 5% and 1