Significance Level

Definition

The significance level, also known as alpha (α), determines how much evidence we need to reject the null hypothesis. It represents the probability of making a Type I error.

Related terms

P-value: The probability of obtaining results as extreme as observed data, assuming the null hypothesis is true.

Confidence Interval: A range of values within which we estimate an unknown population parameter lies with a certain level of confidence.

One-tailed Test: A statistical test where deviations from the expected outcome can only occur in one direction.