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If the probability of making a Type I error is decreased, the probability of making a Type-II error:

A) also decreases

B) remains the same

C) increases

D) depends on the sample size

Which of the following statements is not true about the desired level of significance in a hypothesis test?

A) The larger the level of significance (for example 0.1 is a larger level of significance than 0.05), the more likely you are to reject the null hypothesis.

B) The desired level of significance is the maximum risk we are willing to tolerate in making a Type I error.

C) The desired significance level is another name for the probability of making a Type-II error

D) All of the above are true statements

Business Economics, Economics

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