Q:

15. If other factors are held constant, what is the effect of decreasing the sample size? a. It will increase the estimated standard error and increase the likelihood of rejecting H0 b. It will increase the estimated standard error and decrease the likelihood of rejecting H0 c. It will decrease the estimated standard error and increase the likelihood of rejecting H0 d. It will decrease the estimated standard error and decrease the likelihood of rejecting H0

Accepted Solution

A:
Answer: c. It will decrease the estimated standard error and increase the likelihood of rejecting H0Step-by-step explanation:Given that a sample size is decreased after keeping other factors constant.In hypothesis testing if sample size is decreased while others are kept constant we have the following The margin of error = critical value *std dev/sqrt nIn other words, the margin of error is inversely proportional to square root of sample size.So if n increases, margin of error decreases, making confidence interval narrower.This gives more chance for rejecting null hypothesis.Hence correct answer would be c. It will decrease the estimated standard error and increase the likelihood of rejecting H0