question wrote:
There's nothing else to the question. It's prefixed with, "This question is to help you fully understand the intricacies of statistics. Enjoy."
Ok, I'm pretty sure I know what this question is getting at, I just hope that my explanation makes sense (I'll phrase this in terms of a regression.)
Basically, in none of the tests should the null hypothesis be rejected. If we're testing the null hypothesis that some coefficient equals zero (Ho: B1=0) then the manager would never reject that null hypothesis if he could see what was going on in the population. There is no relationship. But since he is only using statistical inference, the manager will reject the null hypothesis 5% of the time and find a relationship.
I think what your instructor is getting at is that statistics is a powerful tool but it has it's limitations. Sometimes you will find a relationship that doesn't really exist in the population, and sometimes you will not be able to reject a null hypothesis when in the population the relationship really is there.