Confidence Intervals and Tests of Significance: False Statements

False Statements about Confidence Intervals and Tests of Significance

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Question

Which of the following statements is false in reference to confidence intervals and/or tests of significance?

Answers

A. As the confidence level increases, the area between the upper confidence limit and the lower confidence limit increases.

B. More than one of these answers is false.

C. The significance level is denoted by the Greek letter alpha.

D. The significance level is typically measured by (1 - the probability of a Type II error).

E. As the confidence level increases, the power of the does not necessarily increase.

F. Significance levels are typically set equal to 0.10, 0.05, and 0.01.

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Explanations

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A. B. C. D. E. F.

In most statistical tests, the significance level is equal to one minus the probability of a Type I error. The Type I error is given much more attention in hypothesis testing than is the Type II error, and this is partially because of the inherent difficulty in quantifying the probability of a Type II error. Remember that a Type II error occurs when one incorrectly fails to reject the null hypothesis. Reliably predicting this occurrence is difficult. Conversely, determining the probability of a Type I error requires much less effort and is subject to much less estimation bias. The remaining answers are correct.

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