(d) (extra credit 5 pts) Bonferroni, who is Joey's family friend from Italy, pointed out that because
Joey is conducting multiple hypothesis tests, he is likely to make more frequent false rejections
(i.e., type I errors) than the type I error rate he uses. Bonferroni suggested that Joey use the same
100 hypothesis tests on the 100 employees' investment returns, but use a different significance
level (i.e., type I error rate) for each test: use 0.05/100 =0.0005. Based on this new type I error
rate for each test, what is the probability of Joey finding out that at least one strategy works based
on the 100 hypothesis tests, even though the truth is that none of the strategy works?.
MARUTI SUZUKI- A Successful Joint Venture in India.pptx
d extra credit 5 pts Bonferroni who is Joeys family fr.pdf
1. (d) (extra credit 5 pts) Bonferroni, who is Joey's family friend from Italy, pointed out that because
Joey is conducting multiple hypothesis tests, he is likely to make more frequent false rejections
(i.e., type I errors) than the type I error rate he uses. Bonferroni suggested that Joey use the same
100 hypothesis tests on the 100 employees' investment returns, but use a different significance
level (i.e., type I error rate) for each test: use 0.05/100 =0.0005. Based on this new type I error
rate for each test, what is the probability of Joey finding out that at least one strategy works based
on the 100 hypothesis tests, even though the truth is that none of the strategy works?
