A significance level for a hypothesis test is given as $\alpha = .01$. Interpret this value.
A) The smallest value of $\alpha$ that you can use and still reject $H _ { 0 }$ is $.01$.
B) The probability of making a Type I error is $.01$.
C) There is a $1 \%$ chance that the sample will be biased.
D) The probability of making a Type II error is $.99$.

Question

Quizplus · Accepted Answer

The significance level $\alpha = .01$ indicates the probability of making a Type I error, which is rejecting the null hypothesis $H_0$ when it is actually true.

A Significance Level for a Hypothesis Test Is Given As \alpha