1) A drug company is studying the effect of a new drug. In its clinical trials, the researcher used a significance level of.01. By using this significance level instead of the more usual .05, the researcher has a) Expanded the critical region b) Increased the critical value c) Increased the probability of rejecting the Ho

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1) A drug company is studying the effect of a new drug. In its clinical trials, the researcher used a significance level of .01. By using this significance level instead of the more usual .05, the researcher has:

a) Expanded the critical region  
b) Increased the critical value  
c) Increased the probability of rejecting the \( H_0 \)  

2) When a researcher rejects the null hypothesis:

a) The obtained statistical value is larger than the critical value  
b) The obtained statistical value is smaller than the critical value  
c) P value is smaller than the significant level  

3) A 95% confidence interval was calculated to be (15, 21). This means that if 100 such confidence intervals (CIs) were constructed then:

a) 95% of the CIs will be (15, 21)  
b) 95% of the CIs will include the population mean  
c) The population mean would lie between (15, 21) 95 times.  
d) The population mean would be found in about 95 of the CIs.
Transcribed Image Text:1) A drug company is studying the effect of a new drug. In its clinical trials, the researcher used a significance level of .01. By using this significance level instead of the more usual .05, the researcher has: a) Expanded the critical region b) Increased the critical value c) Increased the probability of rejecting the \( H_0 \) 2) When a researcher rejects the null hypothesis: a) The obtained statistical value is larger than the critical value b) The obtained statistical value is smaller than the critical value c) P value is smaller than the significant level 3) A 95% confidence interval was calculated to be (15, 21). This means that if 100 such confidence intervals (CIs) were constructed then: a) 95% of the CIs will be (15, 21) b) 95% of the CIs will include the population mean c) The population mean would lie between (15, 21) 95 times. d) The population mean would be found in about 95 of the CIs.
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When the significance level is reduced from 0.05 to 0.01, then the critical region would decrease, but does not expand. The level of significance α=0.01 is the probability of committing type I error, that is probability of rejecting the true null hypothesis. If level of significance is decreased then the probability of type I error also decreases, that probability of rejecting H0 decreases.

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