The analyst gets to choose the significance level .It is typically chosen to be 0.50,but it is occasionally chosen to be 0.05.

Question

The analyst gets to choose the significance level  .It is typically chosen to be 0.50,but it is occasionally chosen to be 0.05.

Quizplus · Accepted Answer

The most common significance level chosen for hypothesis tests is 0.05, not 0.50. A significance level of 0.05 indicates that there is only a 5% chance of observing the test result if the null hypothesis (the hypothesis being tested) is true. Generally, a lower significance level is chosen for more rigorous testing.

The Analyst Gets to Choose the Significance Level