A state university wants to increase its retention rate of 4% for graduating students from the previous year. After implementing several new programs during the last two years, the university reevaluated its retention rate. Identify the Type I error in this context.

A) The university sampled all students at the university.
B) The product of the university's sample size and sample proportion was less than 10.
C) The university stops all new programs, but in fact retention is on the rise and the programs help.
D) The university concludes that retention is on the rise, but in fact the new programs do not help retention.
E) The university concludes that retention is on the rise since the retention rate can only increase.

2 answers

Type I or alpha error is the probability of rejecting the null hypothesis when it is actually true.

http://en.wikipedia.org/wiki/Type_I_and_type_II_errors
http://www.stats.gla.ac.uk/steps/glossary/hypothesis_testing.html

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