Question

explain the meaning of Alpha level in statistics

Answer 1

Sol:

alpha=level of significance

Indicates the percentage of sample means that is outside the cut off limits(critical value)

The higher the alpha used for testing a hypothesis,the higher the probability of rejecting a null hypothesis when it is true(TYPE 1 ERROR)

Accepting a null hypothesis when it is false is called a Type II error and its probability is beta.

For example if we say alpha=0.05,means the probbaility of being right is 95% and the probability of being wrong is 5%.

rejection region=5%

acceptance region=95%