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Imagine we have rejected the null hypothesis when conducting a two tailed test w

ID: 3173572 • Letter: I

Question

Imagine we have rejected the null hypothesis when conducting a two tailed test with a .01 level of significance. Are the following true or flase, and why 1) the probability the null is flase is .99 2)Probability we made the wrong decision on the null is .01 3) if we always use the .01 levle of significance over the long run we will make the wrong decsion on the null hypothesis 1% of the occasions when we reject the null 4)if we always use the .01 levle of significance over the long run we will make the wrong decsion on the null hypothesis 1% of the occasions when the null is true

Explanation / Answer

The null hypothesis is rejected with 0.01 level of significance

1) The probability the null is false is 0.99.

FALSE (We are rejecting the null hypothesis at 1% l.o.s means we are saying null hypothesis is false with 0.01 probability)

2) Probability we made the wrong decision on the null is 0.01.

FALSE (We are rejecting null hypothesis at 1% l.o.s means we are saying the null hypothesis is wrong with 0.01 probability)

3) If we always use the 0.01 level of significance over the long run we will make the wrong decision on the null hypothesis 1% of the occasions when we reject the null.

TRUE

4) If we always use the 0.01 level of significance over the long run we will make the wrong decision on the null hypothesis 1% of the occasions when the null is true.

FALSE

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