Final answer:
The correct answer is a. The probability of rejecting the null hypothesis when the null hypothesis is true is 1 percent.
Step-by-step explanation:
The correct answer is a. The probability of rejecting the null hypothesis when the null hypothesis is true is 1 percent.
When we perform a statistical test, we are trying to determine whether there is enough evidence to reject the null hypothesis in favor of the alternative hypothesis.
The level of significance, also known as alpha, represents the maximum probability of making a Type I error, which is rejecting the null hypothesis when it is actually true. In this case, the level of significance is 1 percent, so the probability of rejecting the null hypothesis when it is true is 1 percent.
For example, if we conduct a hypothesis test at a 1 percent level of significance and we reject the null hypothesis, we can say that there is a 1 percent chance of obtaining a result as extreme or more extreme than the one observed if the null hypothesis is true.