What is alpha level significance in statistics?

What is alpha level significance in statistics?

Alpha level significance, often denoted as alpha (α), is the threshold for determining statistical significance. It's commonly set at 0.05.

Why is the alpha level usually set at 0.05?

The 0.05 level is a conventional standard that balances the risk of Type I errors (false positives) and the need for statistical power.

What happens if I set a lower alpha level?

Setting a lower alpha level, like 0.01, reduces the chance of a Type I error but may increase the risk of Type II errors (false negatives).

Can you give an example of how to use alpha level in a hypothesis test?

Sure! In a hypothesis test, if your p-value is less than 0.05, you reject the null hypothesis, indicating statistical significance.