Chapter 5 · Data Analysis: A Concise Overview of Statistical Techniques · Slide 191/274

Hypothesis Testing

Significance (α) — the probability that a true null hypothesis is rejected.

5.2.1 · Hypothesis TestingStep 2 · Common levels

Step 2 · Setting the significance level

Significance (α) — the probability that a true null hypothesis is rejected.

β — the probability that a false null hypothesis is accepted.

Significance levels in market research

α — significance level

0.01 (1%)

0.05 (5%)

(1−α) — confidence level

0.99 (99%)

0.95 (95%)

QUESTIONSTAR · Dr. Paul Marx191 / 274