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) I and III
B) II only
C) III only
D) I only
E) I and II

Question

Quizplus · Accepted Answer

Increasing the standard of proof (requiring a higher approval rating) decreases the risk of Type I error but increases the risk of Type II error, as it becomes harder to detect a true effect.

Not Wanting to Risk Poor Sales for a New Soda