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In the hypothesis testing procedure  refers to 1 - the level of significance the critical value the confidence level level of significance

Question

In the hypothesis testing procedure

α \alpha refers to

  • 1 - the level of significance
  • the critical value
  • the confidence level
  • level of significance
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Solution

In hypothesis testing, α refers to the level of significance. Here's a step-by-step explanation:

  1. Hypothesis testing is a statistical method that is used in making statistical decisions using experimental data.

  2. In hypothesis testing, an initial claim is made, which is then compared with the data to see if there is enough statistical evidence to reject the claim.

  3. The level of significance, denoted as α, is the probability of rejecting the null hypothesis when it is true.

  4. The level of significance is often set at 0.05 (5%), implying that it is acceptable to have a 5% chance of incorrectly rejecting the null hypothesis.

  5. The critical value is a point on the test distribution that is compared to the test statistic to determine whether to reject the null hypothesis. If the absolute value of your test statistic is greater than the critical value, you can declare statistical significance and reject the null hypothesis.

  6. The confidence level is related to the level of significance. It's the probability that the value of a parameter falls within a specified range of values. For example, a 95% confidence level means you want to be 95% certain.

  7. So, α is not equal to 1 - the level of significance. Instead, α is the level of significance itself.

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