Question

Which of the following is correct? Multiple Choice When the sample size increases, both α and β may decrease. Type II error can only occur when you reject H0. Type I error can only occur if you fail to reject H0. The level of significance is the probability of Type II error.

Answer 1

Answer:

(A) When the sample size increases, both α and β may decrease.

Step-by-step explanation:

Which of the following is correct?

(A) This option is right.

When a sample's size increases, the values for alpha and beta may decrease; if and only if sample size is the denominator in the slope equation (in each case) and the numerator stays the same (that is, ceteris paribus; all other things being equal). The larger the denominator, the smaller the slope value for alpha and beta.

(B) This option is wrong

Type 2 error can only occur when you fail to reject a true H0

(C) This option is wrong

Type 1 error can only occur if or when you don't reject a false H0

(D) This option is wrong

The level of significance is the probability of a Type 1 error, not the probability of a Type 2 error.