Question

Explain the concepts of level of significance and rejection region using suitable diagram of a
standard normal curve

08 Mar 2018
Answer :
Word Count : 286

Level Of Significance

The level of significance is defined as the probability of rejecting a null hypothesis by the test when it is really true, which is denoted as α. That is, P (Type I error) = α.

Confidence level:

Confidence level refers to the possibility of a parameter that lies within a specified range of values, which is denoted as c. Moreover, the confidence level is connected with the level of significance. The relationship between level of significance and the confidence level is c=1−α.
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