Question

if the consequences of making a type i error are severe, would you choose the level of significance, α, to equal 0.01, 0.05, or 0.10?
choose the correct answer below.
○a. 0.01
○b. 0.10
○c. 0.05

Explanation:

The level of significance, \(\alpha\), is the probability of making a Type I error. If the consequences of a Type I error are severe, we want to minimize the probability of making such an error. A smaller \(\alpha\) means a lower probability of a Type I error. Among \(0.01\), \(0.05\), and \(0.10\), \(0.01\) is the smallest.

Answer:

A. 0.01