Not wanting to risk poor sales for a new soda flavor, a company decides to run one more taste test
On potential customers, this time requiring a higher approval rating than they had for earlier tests.
This higher standard of proof will increase
I. the risk of Type I error
II. the risk of Type II error
III. power
A) II only
B) III only
C) I only
D) I and III
E) I and II

Question

Quizplus · Accepted Answer

Requiring a higher approval rating increases the risk of Type II error because it makes it harder to detect a true effect (i.e., that the new flavor is actually liked), thus reducing the power of the test.

Not Wanting to Risk Poor Sales for a New Soda