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In the hypothesis testing procedure, alpha isGroup of answer choicesthe confidence levelthe critical value1 - level of significancethe level of significance

Question

In the hypothesis testing procedure, alpha is

  • Group of answer choices
    • the confidence level
    • the critical value
    • 1 - level of significance
    • the level of significance
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Solution

In hypothesis testing, alpha (often denoted as α) represents the level of significance. It is the threshold for determining whether to reject the null hypothesis. The level of significance is the probability of making a Type I error, which occurs when the null hypothesis is true, but we mistakenly reject it.

Here is a breakdown of the provided answer choices in relation to alpha:

  1. The Confidence Level: This is complementary to alpha. For instance, if α = 0.05, the confidence level is 0.95.
  2. The Critical Value: This is a point or points on the scale of the test statistic beyond which you reject the null hypothesis; it depends on α but is not equivalent to α itself.
  3. 1 - Level of Significance: This is equivalent to the confidence level, not α.
  4. The Level of Significance: This is the correct interpretation of alpha (α).

Final Answer

Alpha is the Level of Significance.

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