The level of significance chosen for hypothesis testing is based on _____.
A) the desired level of confidence one wishes to have in the results
B) the desired degree of precision
C) how much risk of a type I error one is willing to accept
D) the statistical test used
E) whether the sample is a probability sample

Question

Quizplus · Accepted Answer

The level of significance chosen for hypothesis testing is based on how much risk of a type I error one is willing to accept. This is typically set at 5%, which means that there is a 5% chance of rejecting the null hypothesis when it is actually true. Alternatively, it can be set at a lower level, such as 1%, for greater confidence in the results but with a higher risk of a type II error, which is failing to reject the null hypothesis when it is actually false. The other options are not directly related to the choice of level of significance.

The Level of Significance Chosen for Hypothesis Testing Is Based