i. To prevent bias, the level of significance is selected before setting up the decision rule and sampling the population.
Ii) The level of significance is the probability that a true hypothesis is rejected.
Iii) If the critical values of the test statistic z are ±1.96, they are the dividing points between the areas of rejection and non-rejection.
A) (i), (ii) and (iii) are all correct statements
B) (i) is a correct statement but not (ii) or (iii).
C) (i) and, (iii) are correct statements but not (ii).
D) (i) and, (ii) are correct statements but not (iii).
E) (ii) and (iii) are correct statements but not (i).

Question

Quizplus · Accepted Answer

The level of significance is chosen before testing to avoid bias. It is the probability of rejecting a true null hypothesis (Type I error). Critical values ±1.96 are correct for a 5% significance level in a two-tailed test, marking rejection regions.

I to Prevent Bias, the Level of Significance Is Selected