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Levels of Significance

The document discusses the level of significance in statistical hypothesis testing. The level of significance, represented by the Greek letter alpha (α), is the probability of rejecting the null hypothesis when it is true. A lower significance level means it is less likely to reject the null hypothesis by chance. In hypothesis testing, the results are compared to the null hypothesis and the probability of those results is determined assuming the null hypothesis is true. If this probability is less than or equal to the significance level, the null hypothesis is rejected and the outcome is considered statistically significant. There are two types of errors in hypothesis testing - Type I involves rejecting a true null hypothesis, while Type II involves accepting a false null hypothesis.

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Viswa Keerthi
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2K views6 pages

Levels of Significance

The document discusses the level of significance in statistical hypothesis testing. The level of significance, represented by the Greek letter alpha (α), is the probability of rejecting the null hypothesis when it is true. A lower significance level means it is less likely to reject the null hypothesis by chance. In hypothesis testing, the results are compared to the null hypothesis and the probability of those results is determined assuming the null hypothesis is true. If this probability is less than or equal to the significance level, the null hypothesis is rejected and the outcome is considered statistically significant. There are two types of errors in hypothesis testing - Type I involves rejecting a true null hypothesis, while Type II involves accepting a false null hypothesis.

Uploaded by

Viswa Keerthi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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LEVEL OF SIGNIFICANCE

What is level of
significance?
The

probability of rejecting the


null hypothesis in a statistical
test when it is true called
significance level.

The

Greek letter alpha () is used


to indicate the significance level

How it is used in hypothesis


testing?
The

difference between the


results of the experiment and the
null hypothesis is determined.

Assuming

the null hypothesis is


true, the probability of a
difference that large or larger is
computed

Cont..
Finally,

this probability is
compared to the significance
level.
If the probability is less than or
equal to the significance level,
then the null hypothesis is
rejected and the outcome is said
to be statistically significant.

TYPES OF ERRORS
There

are two types of errors..

Type I - Rejecting a true null


hypothesis

Type II Accepting the false null


hypothesis

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