Why Should You Use a Bonferroni Corrected Alpha When Breaking

question 9

Multiple Choice

Why should you use a Bonferroni corrected alpha when breaking down a significant interaction?

• A) Because of the increased risk of a Type I Error when making multiple statistical tests
• B) Because of the increased risk of a Type II Error when making multiple statistical tests
• C) Because the assumption of homogeneity of variance has been violated
• D) Because of non-normally distributed data

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Definitions:

Opportunity Cost

The lost potential gain from other alternatives when one alternative is chosen.

Income Effects

The changes in an individual's or economy's income and how that changes their spending and saving behavior.

Substitution Effects

The change in consumption patterns due to a change in the relative prices of goods.

Normal Goods

Goods for which demand goes up when income is higher and for which demand goes down when income is lower.