If a hypothesis test is to be conducted using = 0.025, what does that imply about the test?
A) There is a 2.5% chance that the null hypothesis is true.
B) There is a maximum 2.5% chance that a false null hypothesis will be rejected.
C) There is a maximum 2.5% chance that a true null hypothesis will be rejected.
D) There is 2.5% chance of committing a Type I error and 97.5% chance of committing a Type II error.

Question

If a hypothesis test is to be conducted using  = 0.025, what does that imply about the test?
A) There is a 2.5% chance that the null hypothesis is true. 
B) There is a maximum 2.5% chance that a false null hypothesis will be rejected. 
C) There is a maximum 2.5% chance that a true null hypothesis will be rejected. 
D) There is 2.5% chance of committing a Type I error and 97.5% chance of committing a Type II error.

Quizplus · Accepted Answer

A significance level of 0.025 implies that there is a maximum 2.5% chance that a true null hypothesis will be rejected. This means that if the null hypothesis is actually true, there is only a 2.5% chance that we will incorrectly reject it (and thus incorrectly conclude that the alternative hypothesis is true).

If a Hypothesis Test Is to Be Conducted Using