Suppose a researcher routinely conducts significance tests by rejecting H0 if the P-value satisfies P 0.05.
Question:
Suppose a researcher routinely conducts significance tests by rejecting H0 if the P-value satisfies P ≤ 0.05. Suppose a test using a test statistic T and righttail probability for the P-value has null distribution P(T = 0) = 0.30, P(T =
3) = 0.62, and P(T = 9) = 0.08.
a. Show that with the usual P-value, the actual probability of type I error is 0 rather than 0.05.
b. Show that with the mid P-value, the actual probability of type I error equals 0.08.
c. Repeat
(a) and
(b) using P(T = 0) = 0.30, P(T = 3) = 0.66, and P(T =
9) = 0.04. Note that the test with mid P-value can be “conservative” [having actual P(type I error) below the desired value] or “liberal” [having actual P(type I error) above the desired value]. The test with the ordinary P-value cannot be liberal.
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