What is the correct interpretation of the significance level α in a hypothesis test?
Group of answer choices
a. The probability that Ha is true given that H0 is NOT rejected
b. The probability that H0 is true given that H0 is rejected
c. The probability of NOT rejecting H0 given that Ha is true
d. The probability of rejecting H0 given that H0 is true
Solution:
Its correct answer is D. i.e. the probability of rejecting the Null
hypothesis H0 given that the null hypothesis H0 is true.
So Correct interpretation of the significance level α in a
hypothesis test is the probability of rejecting H0 given that H0 is
true. Its the probability of making a wrong decision.
Let's assume alpha = 0.05 which indicates a 5% risk of conducting
that a difference exists when there is no actual difference.
So its correct answer is D. i.e. the probability of rejecting H0
given that H0 is true.
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