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Statistics: Ch 9 Hypothesis Testing (13 of 35) What is the 'Level of Confidence'?
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We will learn the Level of Confidence = 1 – level of significance = 1 – alpha (alpha=level of significance).
Ex. If the test statistic falls in the critical region and we reject the null hypothesis then we have a 5% probability that we rejected H0 in error. But there is a 95% probability that we correctly rejected H0. We have a 95% level of confidence that the alternative hypothesis is true.
SMOKEY, OUR DOG, MAKES AN APPEARANCE AT 2:46.
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