Choose the statement that best describes the significance level in the context of the hypothesis test.
A)The significance level of 0.01 is the probability of concluding the defect rate is more than 0.09 when it is equal to 0.09.
B)The significance level of 0.01 is the defect rate we believe is the true defect rate.
C)The significance level of 0.01 is the z-statistic that we will use to compare the observed outcome to the null hypothesis.
D)The significance level of 0.01 is the probability of concluding that the defect rate is equal to 0.09 when in fact it is greater than 0.09.

Question

Quizplus · Accepted Answer

The significance level, often denoted as alpha (α), is the probability of rejecting the null hypothesis when it is actually true. In this context, it represents the risk of concluding there is a difference (e.g., a higher defect rate) when, in fact, no such difference exists. None of the other options accurately describe the significance level in hypothesis testing.

Choose the Statement That Best Describes the Significance Level in the Context