if the consequences of making a type i error are severe, would you choose the level of significance, α, to…

if the consequences of making a type i error are severe, would you choose the level of significance, α, to equal 0.01, 0.05, or 0.10? choose the correct answer below. a. 0.05 b. 0.01 c. 0.10

if the consequences of making a type i error are severe, would you choose the level of significance, α, to equal 0.01, 0.05, or 0.10? choose the correct answer below. a. 0.05 b. 0.01 c. 0.10

Answer

Brief Explanations:

The level of significance $\alpha$ is the probability of making a Type - I error. When the consequences of making a Type - I error are severe, we want to minimize the probability of making this error. Among 0.01, 0.05, and 0.10, 0.01 is the smallest value, which reduces the chance of wrongly rejecting a true null hypothesis.

Answer:

B. 0.01