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Significance Level

Definition

The significance level, also known as alpha (α), determines how much evidence we need to reject the null hypothesis. It represents the probability of making a Type I error.

Analogy

Imagine you are buying a new phone and want to make sure it works properly. The significance level is like your tolerance for defects - if you set it too low, you might end up rejecting phones that are perfectly fine; if you set it too high, you might accept faulty phones.

Related terms

P-value: The probability of obtaining results as extreme as observed data, assuming the null hypothesis is true.

Confidence Interval: A range of values within which we estimate an unknown population parameter lies with a certain level of confidence.

One-tailed Test: A statistical test where deviations from the expected outcome can only occur in one direction.

"Significance Level" appears in:

Practice Questions (20+)

  • What is the purpose of using a significance level (e.g., 0.05) in a two-sample t-test?
  • What is the significance level commonly used in hypothesis testing?
  • For a chi-squared test with a chosen significance level of 0.05, which p-value will NOT allow us to reject the null hypothesis?
  • Which of the following is not a commonly used significance level in a chi-square goodness of fit test?
  • If the p-value in a chi-square goodness of fit test is less than the chosen significance level, what can be concluded about the null hypothesis?
  • If the p-value is less than the significance level, what is the conclusion regarding the null hypothesis?
  • What is the appropriate conclusion based on the following scenario? The p-value is 0.03, and the significance level is 0.05.
  • What is the appropriate conclusion based on the following scenario? The p-value is 0.15, and the significance level is 0.10.
  • What is the significance level in hypothesis testing?
  • What does it mean if the p-value is exactly equal to the significance level?
  • In a hypothesis test, the p-value is calculated to be 0.18. What is the appropriate conclusion at a significance level of α = 0.10?
  • In a hypothesis test, the calculated p-value is 0.07. What is the appropriate conclusion at a significance level of α = 0.05?
  • In hypothesis testing, if the significance level is set at 0.05, what is the probability of a Type I error?
  • What is the significance level in hypothesis testing?
  • In a hypothesis test, if the p-value is less than the significance level, what should you do?
  • What is the significance level (alpha) in a hypothesis test?
  • What is the most common significance level used in research?
  • How does setting a significance level that is too low affect the risk of errors?
  • What is the complement of the significance level in relation to a confidence interval?
  • What is the significance level commonly used to determine whether to reject the null hypothesis?


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© 2024 Fiveable Inc. All rights reserved.

AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.