Applying Statistical Inference: An Example When we change the level of significance from .05 to .01, the probability of a Type 1 error ____ and the probability of a Type 2 error
A)decreases, decreases.
B)decreases, increases.
C)increases, decreases.
D)increases, increases.

Question

Quizplus · Accepted Answer

When the level of significance decreases from .05 to .01, the probability of making a Type 1 error (rejecting a true null hypothesis) decreases because we are using a stricter criterion for rejecting the null hypothesis. However, this makes it harder to detect a true effect if there is one, thus increasing the probability of a Type 2 error (failing to reject a false null hypothesis).

Applying Statistical Inference: an Example When We Change the Level