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: 42

Answer

The level of significance should be a = 0.01, so that the probability of making a Type-I error is as small as possible.

Work Step by Step

If the null hypothesis is rejected when it is in fact true, then a Type I error occurs. To avoid this, we should choose a level of significance of a=0.01, so that the probability of making a Type-I error is as small as possible.
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