A marketing company claims that its customer return 12% of promotional surveys they conduct on a quarterly basis. To test this claim, a random sample of 1000 customers are sent a promotional survey. The significance level (a) of this study is set at 0.05. What does a significance level imply?

Question

Quizplus · Accepted Answer

The significance level in a research study is the probability of rejecting the null hypothesis when it is true.
Key Takeaway: The significance level (a) is a statistical hypothesis test of the probability of rejecting the null hypothesis when it is true. In this example, the researchers have set this level at 0.05 which means that there is a 5% chance that they will wrongly conclude that the customer return rate of 12% is not true.

A Marketing Company Claims That Its Customer Return 12% of Promotional