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In this exercise, we are conducting many hypothesis tests to test a claim. Assume that the...

In this exercise, we are conducting many hypothesis tests to test a claim. Assume that the null hypothesis is true. If 40 tests are conducted using a significance level of 10% approximately how many of the tests will incorrectly find significance?

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Answer #1

Solution:

We are given

n = 40 tests

Significance level = 10% = 0.10

10% of n = 0.10*40 = 4

So, about 4 out of 40 tests will incorrectly find significance.

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