Choosing a Significance Level
A researcher is conducting a hypothesis test and is considering a significance level of either α = 0.05 or α = 0.01. In which of the following situations would it be most appropriate to choose α = 0.01?
A
When the alternative hypothesis is two-sided
B
When the sample size is particularly large
C
When falsely rejecting H₀ would lead to costly consequences
D
When the p-value is expected to be small
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