Chapter 6, Problem 1PP

To determine

To explain identify the True statement.

Answer to Problem 1PP

Statement A is true “Sampling bias increases the chance of committing Type 1 Error.”.

Explanation of Solution

Given:

The statements:

1. Sampling bias increases the chance of committing Type 1 Error.
2. There is no effect on probability of Type 1 Error due to sampling error.

Type 1 Error refers to the rejection of True null hypothesis. Which means a researcher rejects the null hypothesis when it is actually true. It is also known as the level of significance and it is denoted by $\alpha$ .

Factors that affect the chance of committing type 1 error are given below:

• Sample Size
• Level of significance

If the sampling error is higher means that the difference between estimated parameter and the true parameter are higher which means larger the value of test statistics and larger statistics value means lower the P value and P value is the maximum value of level of significance. Therefore, increase in sampling error implies decrease in the type 1 Error.

Therefore Option A is correct.