Question

When conducting a significance test in practice, how should you choose the alpha level?

A) Based on personal preference
B) Setting it lower increases the risk of Type I error
C) Setting it higher reduces the risk of Type II error
D) Adjusting it depending on the sample size

Answer 1

When conducting a significance test, the alpha level should be chosen based on a preconceived or preset value. This determines the threshold for rejecting the null hypothesis.

Step-by-step explanation:

When conducting a significance test in practice, the alpha level should be chosen based on a preconceived or preset value. This is typically referred to as the level of significance or the probability of a Type I error. The alpha level determines the threshold beyond which the null hypothesis will be rejected. It is common to choose an alpha level of 0.05 or 0.01, depending on the desired level of confidence.