In which of the following situations would you want a higher

In which of the following situations would you want a higher alpha:

a)      testing the defect rate of a new stereo model, or

b)      testing a new drug before it is approved for commercial sale in the United States

Explain your response.

Solution

a) testing the defect rate of a new stereo model,

Since higher alpha means type I error may be large.

We cannot take risk with lives when testing a new drug hence for medicines alpha should be as low as possible

But for stereo model, alpha can be bigger first then after improvements can be reduced.