Question

"When everything else is the same and we reduce the significance level, what happens to the chance of making a Type I error?

(A) It increases
(B) It decreases
(C) It remains the same
(D) It's not affected"

Answer 1

When the significance level is reduced, the chance of making a Type I error decreases.

Step-by-step explanation:

When everything else is the same and we reduce the significance level, the chance of making a Type I error decreases. A Type I error occurs when we reject the null hypothesis when it is actually true. By reducing the significance level, we are making it less likely that we will make this error.