I don’t know why, but, this concept seems to haunt me everyday. When the question says “increase in the level of significance,” which I presume is 1 - confidence level, what do they mean? Do they mean that level of significance increases in absolutely amounts numerically? (going from 1 to 5 for example) Or do they mean that it becomes more significant? (goes from 5 to 1) HALP!
It is going from 5% to 1%. Think of this in the context of hypothesis testing. At a 1% level of confidence, you are more confident that the finding is accurate. By the way, by increasing the significance level you decrease the probability of making a Type I Error, but increase the probability of making a Type II Error. Good luck on the exam!
So, they mean to say that it STATISTICALLY becomes more significant. Thank you for the clarification.