The conventional levels of significance of 5% and 1%
A)provide maximum protection against Type I errors.
B)provide maximum protection against Type II errors.
C)are a compromise between the risks of making Type I and Type II errors.
D)are more related to power and sample-size considerations than decision errors.

Question

Quizplus · Accepted Answer

The conventional levels of significance of 5% and 1% are a compromise between the risks of making Type I and Type II errors. A Type I error occurs when the null hypothesis is rejected when it is actually true, while a Type II error occurs when the null hypothesis is not rejected when it is actually false. The choice of significance level affects both Type I and Type II errors, but lowering the significance level decreases the risk of Type I errors at the cost of increasing the risk of Type II errors. Therefore, the conventional levels of significance represent a balance between the two types of errors.

The Conventional Levels of Significance of 5% and 1