Question

In hypothesis testing, what is the level of significance?

SELECT ALL CORRECT OPTIONS

OPTION A

A value between 0 and 1.

OPTION B

The risk of rejecting the null hypothesis when it is true.

OPTION C

It is selected before a decision rule can be formulated.

OPTION D

All apply.

Answer 1

The level of significance is defined as the probability of rejecting a null hypothesis by the test when it is really true, which is denoted as α.

Since it is a probability, it is a value between 0 and 1.

The significance level or alpha tells a researcher how extreme results must be in order to reject the null hypothesis. Therfore it's best to choose the significance level before a decision rule can be formulated.

Therefore, all the options are correct.

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