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When a Type I error is less severe than a Type II error, we should choose a large significance level like 0.9. True or False

User Mnel
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Final answer:

The statement is false because choosing a large significance level increases the probability of making a Type I error, which is not desirable even when a Type I error is considered less severe than a Type II error.

Step-by-step explanation:

The statement is false. In hypothesis testing, the significance level (denoted as α, alpha) represents the threshold for the probability of making a Type I error, which is rejecting a true null hypothesis. When we say that a Type I error is less severe than a Type II error, it does not mean that we should choose a large significance level like 0.9.

Instead, we typically choose a smaller significance level (e.g., 0.05) to reduce the likelihood of making a Type I error. However, the severity of Type I and Type II errors depends on the context of the research question, and we should adjust the significance level accordingly to balance the risks of both errors. A large significance level would increase the risk of incorrectly rejecting a true null hypothesis, which is undesirable.

User Petebolduc
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