Not wanting to risk poor sales for a new soda flavor, a company decides to run one more taste test on potential customers, this time requiring a higher approval rating than they had for earlier tests. This higher standard of proof will increase
I. the risk of Type I error II. the risk of Type II error III. power
A) III only
B) I and III
C) I only
D) II only
E) I and II

Question

Quizplus · Accepted Answer

By setting a higher approval rating for the taste test, the company is raising the bar for what it considers a successful test. This means that it will be more difficult for the company to accept a null hypothesis (i.e., that the new soda flavor is not a success), which therefore increases the risk of Type II error. However, this does not impact the risk of Type I error or power, as these are not directly affected by the approval rating threshold set for the taste test.

Not Wanting to Risk Poor Sales for a New Soda