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A test is carried out at a significance level of 0.10. Which of these is correct

ID: 3056118 • Letter: A

Question

A test is carried out at a significance level of 0.10. Which of these is correct?

When H0 is wrong, there is a 0.9 probability of rejecting the H0 due to random variations in the sample

When H0 is right, the probability of rejecting H0 due to the random variation in the sample is limited to 0.1

There is a probability of 0.1 that when H0 is wrong, we may still keep it

There is a probability of 0.1 that the H0 may be wrong

a)

When H0 is wrong, there is a 0.9 probability of rejecting the H0 due to random variations in the sample

b)

When H0 is right, the probability of rejecting H0 due to the random variation in the sample is limited to 0.1

c)

There is a probability of 0.1 that when H0 is wrong, we may still keep it

d)

There is a probability of 0.1 that the H0 may be wrong

Explanation / Answer

Level of Significance = 0.1

Confidence Level = 0.9

d) It means that we can reject H0 when it is 0.05 outside on both sides of the normal curve

It means that the probability with which we can reject H0 is 0.1

That is the rejection region for H0

Hope this helps :)

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