Suppose you are faced with a decision about whether to take a new job or remain with the one you have. In an analogy to hypothesis testing, the alternative hypothesis is that you will be better off if you change jobs. Your friends are encouraging you to take the new job. In statistical terms, they think:
A) You should not reject the null hypothesis because a type 1 error would be more serious for you than a type 2 error.
B) You should not reject the null hypothesis because a type 2 error would be more serious for you than a type 1 error.
C) You should reject the null hypothesis because a type 1 error would be more serious for you than a type 2 error.
D) You should reject the null hypothesis because a type 2 error would be more serious for you than a type 1 error.

Question

Quizplus · Accepted Answer

In this analogy, rejecting the null hypothesis means taking the new job, which your friends encourage because they believe the risk of missing out on a better opportunity (Type 2 error) is more serious than the risk of leaving a good job for one that isn't better (Type 1 error).

Suppose You Are Faced with a Decision About Whether to Take