Exercise · ZW-HYPOTHESIS-TEST-009 · ★★★ Advanced
With a fixed sample, what happens to \(\beta\) if \(\alpha\) rises from \(0.01\) to \(0.05\)?
Choose one option.
Show answer
- A. It falls, because the rejection region grows
Exercise · ZW-HYPOTHESIS-TEST-009 · ★★★ Advanced
Choose one option.
A larger rejection region makes it easier to detect a false \(H_0\), so \(\beta\) falls; the cost is more Type I errors. With fixed \(n\) the two errors trade off.
A hypothesis test is a rule that, from sample data, decides whether to reject the null hypothesis \(H_0\), which fixes a value \(\theta_0\) for a parameter \(\theta\), in favor of the alternative \(H_1\).