Two Researchers Have Identical Models, Data, Coefficients and Standard Error

question 21

Multiple Choice

Two researchers have identical models, data, coefficients and standard error estimates. They test the same hypothesis using a two-sided alternative, but researcher 1 uses a 5% size of test while researcher 2 uses a 10% test. Which one of the following statements is correct?

• A) Researcher 2 will use a larger critical value from the t-tables
• B) Researcher 2 will have a higher probability of type I error
• C) Researcher 1 will be more likely to reject the null hypothesis
• D) Both researchers will always reach the same conclusion.

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