Question

How to choose a significance level in hypothesis testing?

Answer 1

Answer:

Step-by-step explanation:

To bring it to life, I’ll add the significance level and P value to the graph in my previous post in order to perform a graphical version of the 1 sample t-test. It’s easier to understand when you can see what statistical significance truly means!

Here’s where we left off in my last post. We want to determine whether our sample mean (330.6) indicates that this year's average energy cost is significantly different from last year’s average energy cost of $260.

Answer 2

Answer:

The significance level, also denoted as alpha or α, is the probability of rejecting the null hypothesis when it is true. For example, a significance level of 0.05 indicates a 5% risk of concluding that a difference exists when there is no actual difference.

Step-by-step explanation: