Using the sign test, if (1) H 1 is directional, (2) H 0 is false, (3) a = 0.01, and (4) N = 12, then the probability of making a Type I error equals _________.
A) 0.0002
B) 0.0010
C) 0
D) 0.0192

Question

Quizplus · Accepted Answer

The probability of making a Type I error, also known as the alpha level (α), is the threshold for rejecting the null hypothesis when it is actually true. In this scenario, α is given as 0.01. However, the question states that H0 is false, meaning we are in a situation where rejecting the null hypothesis is the correct decision. Therefore, the probability of making a Type I error (rejecting a true null hypothesis) in this context is 0, because we are told the null hypothesis is false.

Using the Sign Test, If (1) H 1 Is Directional