METHODS OF DATA ANALYSIS
DECISION MAKING WITH HYPOTHESIS TESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Type I Error
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Type II Error
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Right Decision
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None of the above
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Detailed explanation-1: -The level of significance is the probability that we reject the null hypothesis (in favor of the alternative) when it is actually true and is also called the Type I error rate. = Level of significance = P(Type I error) = P(Reject H0 | H0 is true). Because is a probability, it ranges between 0 and 1.
Detailed explanation-2: -H0 is called the null hypothesis and HA is called the alternative hypothesis. The union of null and alternative hypothesis defines a hypothesis H ∈ =0 ∪ A called the maintained hypothesis. A hypothesis is called simple if it completely specify the probability distribution and otherwise com-posite.
Detailed explanation-3: -The degree of statistical significance generally varies depending on the level of significance. For example, a p-value that is more than 0.05 is considered statistically significant while a figure that is less than 0.01 is viewed as highly statistically significant.