The decision rule used to determine whether the null hypothesis should be rejected, and the alternative hypothesis accepted is known as the:
A) point estimate.
B) confidence level.
C) significance level.
D) confidence interval estimate.

Question

Quizplus · Accepted Answer

The decision rule used to determine whether the null hypothesis should be rejected is based on the significance level. The significance level, also known as alpha (α), is typically set at 0.05 or 0.01, and represents the maximum probability of a Type I error (rejecting the null hypothesis when it is actually true). The decision to reject or fail to reject the null hypothesis is based on whether the calculated test statistic is greater than or equal to the critical value at the specified significance level.

The Decision Rule Used to Determine Whether the Null Hypothesis