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In this exercise, we are conducting many hypothesis tests to test a claim. Assume that the null hypothesis is true. If 400 tests are conducted using a significance level of , approximately how many of the tests will incorrectly find significance?

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Answer:

Since the null hypothesis is true, finding the significance is a type I error.

The probability of the year I error = level of significance = 0.05.

so, the number of tests that will be incorrectly found significant is computed as follow: 0.05 * 100 = 5

Therefore, 5 tests will be incorrectly found significant given that the null hypothesis is true.

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