Statistics: Informed Decisions Using Data (4th Edition)

Published by Pearson
ISBN 10: 0321757270
ISBN 13: 978-0-32175-727-2

Chapter 10 - Section 10.1 - Assess Your Understanding - Applying the Concepts - Page 484: 41

Answer

Type-I error is more serious.

Work Step by Step

Type-I error is more serious, as it is the matter of a company's reputation and one should have very solid evidence to go against the company. Moreover, if later on our conclusions prove wrong, then we would be in serious trouble. We should have a level of significance a = 0.01 to get more precise results.
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