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Hypothesis Testing


New Member
I have seen this question from different sources. GARP Exams (2007 & 2009) and have 2 different answers for it: C & D

Which is one correct? I would say C, but would like to have confirmation. Thanks

Which of the following statements regarding hypothesis testing is incorrect?
A. Type II error refers to the failure to reject the null hypothesis when it isactually false.
B. Hypothesis testing is used to make inferences about the parameters of agiven
population on the basis of statistics computed for a sample that isdrawn from that
C. All else being equal, the decrease in the chance of making a type I errorcomes at the
cost of increasing the probability of making a type II error.
D. The p‐value decision rule is to reject the null hypothesis if the p‐value isgreater than the
significance level


New Member
Sorry, one question read which one is correct and the other which one is incorrect.

I see it now. C is correct and D is incorrect.