An enthusiastic junior executive has run a test of his new marketing program. He

Question

An enthusiastic junior executive has run a test of his new marketing program. He reports that it resulted in a "significant" increase in sales. A footnote on his report explains that he used an alpha level of 7.5% for his text. Presumably, he hypothesis test against the null hypothesis of no change in sales. If instead he had use an alpha level of 10%, is it more or less likely that he would have rejected his null hypothesis? Explain. If he chose the alpha level 7.5% so that he could claim statistical significance, explain why this is not an ethical use of statistics.

Explanation / Answer

a. Answer:

C. It is more likely that he would have rejected the null hypothesisbecause lowering alpha decrease thechance of rejecting null.

This is because the value of alpha gives type I error, that is the probability of rejcting null when it is true, increasing alpha will increase the chance of null being rejected and vice versa.

b. Answer:

Option C. Because the standard level of significance should be chosen before the test.

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