Which of the following statements is not true?
A) Type I and Type II errors can be simultaneously reduced by increasing the sample size.
B) In marketing problems, Type II errors are generally more serious than Type I errors.
C) Hypothesis testing is based on probability theory.
D) If the null hypothesis is true, it implies that there is no change to the status quo.

Question

Quizplus · Accepted Answer

In marketing problems, Type I errors are generally more serious than Type II errors. This is because a Type I error occurs when the researcher incorrectly rejects a true null hypothesis, leading to a wrong decision. In contrast, a Type II error occurs when the researcher fails to reject a false null hypothesis, potentially missing a valuable opportunity. However, the importance of Type I and Type II errors can vary depending on the specific problem and consequences of each error.

Which of the Following Statements Is Not True