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There is always a possibility that the decision reached in a hypothesis test is incorrect. True...

There is always a possibility that the decision reached in a hypothesis test is incorrect.

True or False

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Answer #1

TRUE

Yes, it is true that there is always a possibility that the decision reached in a hypothesis test is incorrect because the decision is taken on the level of significance, say . When =0.05 we say that there is 95% chance that the decision taken is correct but there is 5 % chance that it is not correct. So, there is always a possibility that the decision reached in a hypothesis test is incorrect.

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