Question

Choose the correct one
Level of Significance, Alpha, is:

*The procedural definition is: Alpha determines the cut off point, which is the threshold used to decide whether the test statistic is statistically significant.

* The Type 1 Error definition is: Alpha is the risk of rejecting the Null Hypothesis even though it is true (as an equality).

* All of the answers are correct

* As an analogy alpha is: "Innocent, but found guilty".

Answer 1

Solution:

Its answer is C. I.e. all answers are correct.

Level of significance determine the cut off point which is the threshold used to determine whether our hypothesis is statistically significant or not. If my confidence level is 95percent so level of significance is 0.05. If my p-value is less than level of significance than we will reject the null hypothesis else we will accept . So level of significance is threshold point.

Also alpha is risk or probability of rejecting the null hypothesis even though it is true.

So its answer is C. Ie. All of the answers are correct.

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