question archive If a two-tailed hypothesis test has a 5% probability of rejecting the null hypothesis when the null is true, it is most likely that: the probability of a Type I error is 2
Subject:FinancePrice:2.86 Bought11
If a two-tailed hypothesis test has a 5% probability of rejecting the null hypothesis when the null is true, it is most likely that: the probability of a Type I error is 2.5% the power of the test is 95% The probability of a Type Il error is 5%. the confidence level of the test is 95%
The correct answer is 1st option
Explanation:- In hypothesis testing, Type I error refers to the mistake of rejecting the null hypotheiss when infact the null hypothesis it is true. In a two tailed test, the 5% rejection area is distributed between the extreme ends of the sampling distribution. Due to the distribution of the rejection area between the extreme ends, there is a 2.5% probability of Type I error i.e. ( 5% probability 2) .