Data, Inference, and Decisions
The α level, also known as the significance level, is a threshold set by researchers to determine whether to reject the null hypothesis in hypothesis testing. It reflects the probability of making a Type I error, which occurs when a true null hypothesis is incorrectly rejected. The α level plays a crucial role in statistical tests like t-tests and z-tests, guiding researchers on how much evidence they need to claim that their findings are statistically significant.
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