What Happens to the Probability of Committing a Type I

question 5

Multiple Choice

What happens to the probability of committing a Type I error if the level of significance is changed from α = .01 to α = .05?

• A)The probability of committing a Type I error will decrease.
• B)The probability of committing a Type I error will increase.
• C)The probability of committing a Type I error will remain the same.
• D)The change in probability will depend on your sample size.

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Definitions:

Business Plan

A detailed document that outlines an organization's objectives, strategies, target market, financial forecasts, and operational plans.

Future Business Operations

Projected or planned activities and procedures for running a business in the future.

Competitive Analysis

Competitive Analysis is the assessment of competitors and their strategies to identify strengths, weaknesses, opportunities, and threats in the marketplace.

Executive Summary

A brief, comprehensive summary of a business plan or an investment proposal, which highlights its key points.