How does the choice of significance level affect the probability of making a Type I error?
- Higher significance level leads to higher probability of Type I error
- Lower significance level leads to higher probability of Type I error
- Significance level has no effect on the probability of Type I error
- The choice of significance level affects the probability of Type II error, not Type I
The significance level (alpha) is the probability of making a Type I error. So, a higher significance level increases the chance of rejecting the null hypothesis when it's true, hence increasing the probability of a Type I error.
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