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What does the significance level α\alpha control in hypothesis testing?

The significance level α\alpha controls the chance of rejecting a true null hypothesis. It defines the probability of making a Type I error, which is rejecting H0H_0 when it is actually true.

Conditions

  • The test is conducted under the null model.
  • α\alpha is the pre-specified significance level.

Reasoning, step by step

  1. Specify the significance level α\alpha before conducting the test.
  2. Understand that α\alpha represents the maximum acceptable probability of rejecting a true null.
  3. Use α\alpha to determine the rejection region or compare with the p-value.

Example

Under the test's null model, the significance level α\alpha controls the chance of rejecting a true null.

Common misconceptions

  • Thinking that α\alpha is the probability that the null hypothesis is true.
  • Believing that α\alpha controls the chance of accepting a false null.

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