Question 207196: What happens to the probability of rejecting Ho if the standard deviation is increased and why?
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! What happens to the probability of rejecting Ho if the standard deviation is increased and why?
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Look at the formula for the test statistic:
t = x-bar*s/sqrt(n) or z = p-hat*sqrt[pq/n]
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Test Statistic:
If standard deviation is increased, absolute t or z is larger.
If t and/or z are larger, the p-value is smaller because
the p-value is the probability that t or z is greater than the
test statistic (twice that if you have a two-tail test).
As p-values get smaller fewer and fewer Ho are rejected.
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Cheers,
Stan H.
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