All else equal, as the variance of the random variable increases then the probability of rejecting the null at the $5 \%$-level decreases.

Name: All else equal, as the variance of the random variable increases then the probability of rejecting the null at the $5 \%$-level decreases.
Brand: Quizplus
Rating: 4.7 (38 reviews)

Question

Quizplus · Accepted Answer

As the variance increases, the standard error increases, leading to a wider confidence interval and a smaller test statistic, which decreases the probability of rejecting the null hypothesis.

All Else Equal, as the Variance of the Random Variable 5%5 \%5%

All Else Equal, as the Variance of the Random Variable $5 \%$