Answer to Question #203045 in Statistics and Probability for Lauren Veitz

Question

If the consequence of making a Type I Error is severe, then the level of significance should be set _____.

a. to 0.5

b. high

c. to .10

d. low

Answer 1

A Type I error is when we reject a true null hypothesis. Lower values of $\alpha$ make it harder to reject the null hypothesis, so choosing lower values for $\alpha$ can reduce the probability of a Type I error. 

If the consequence of making a Type I Error is severe, then the level of significance should be set  low.

d. low