A one-sided hypothesis test is to be performed with a significance level of 0.05. Suppose that the null hypothesis
is false. If a significance level of 0.01 were to be used instead of a significance level of 0.05, which of the
following would be true?
The power of a test increases as its significance level decreases. Therefore, an increase in significance level lowers the power of the test.
In a Type II error, the null hypothesis is actually correct, but it is rejected. Since there is a 5% chance rather than a 1% chance of rejecting the null hypothesis, there is a greater chance of making a Type II error.