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What is the level of significance of a test of hypothesis?

Short Answer

Expert verified

The significance level is a predefined value of the probability of making a false decision.

Step by step solution

01

Definition of the level of significance

The significance level is a predefined value of the probability of making a false decision. It is also known as the probability of Type I error.

02

Explanation of the level of significance

The level of significance is used to decide on the null hypothesis, whether to reject or fail to reject the null hypothesis. If the p-value of the test is less than the level of significance null hypothesis is rejected; otherwise not.

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Most popular questions from this chapter

Feminized faces in TV commercials. Television commercials most often employ females or “feminized” males to pitch a company’s product. Research published in Nature (August 27 1998) revealed that people are, in fact, more attracted to “feminized” faces, regardless of gender. In one experiment, 50 human subjects viewed both a Japanese female face and a Caucasian male face on a computer. Using special computer graphics, each subject could morph the faces (by making them more feminine or more masculine) until they attained the “most attractive” face. The level of feminization x (measured as a percentage) was measured.

a. For the Japanese female face, x = 10.2% and s = 31.3%. The researchers used this sample information to test the null hypothesis of a mean level of feminization equal to 0%. Verify that the test statistic is equal to 2.3.

b. Refer to part a. The researchers reported the p-value of the test as p = .021. Verify and interpret this result.

c. For the Caucasian male face, x = 15.0% and s = 25.1%. The researchers reported the test statistic (for the test of the null hypothesis stated in part a) as 4.23 with an associated p-value of approximately 0. Verify and interpret these results.

Intrusion detection systems. The Journal of Research of the National Institute of Standards and Technology (November– December 2003) published a study of a computer intrusion detection system (IDS). The IDS is designed to provide an alarm whenever unauthorized access (e.g., an intrusion) to a computer system occurs. The probability of the system giving a false alarm (i.e., providing a warning when no intrusion occurs) is defined by the symbol α, while the probability of a missed detection (i.e., no warning given when an intrusion occurs) is defined by the symbol β. These symbols are used to represent Type I and Type II error rates, respectively, in a hypothesis-testing scenario

a. What is the null hypothesis, H0?

b. What is the alternative hypothesis,Ha?

c. According to actual data collected by the Massachusetts Institute of Technology Lincoln Laboratory, only 1 in 1,000 computer sessions with no intrusions resulted in a false alarm. For the same system, the laboratory found that only 500 of 1,000 intrusions were actually detected. Use this information to estimate the values of αand β.

A two-tailed test was conducted with the null and alternative hypotheses stated being \({H_0}:p = .69\) against \({H_a}:p \ne .69\), respectively, with a sample size of 150. The test results were z = -.98 and two-tailed p-value = .327

a. Determine the conditions required for a valid large sample test

In a test of H0:μ=100againstHa:μ>100, the sample data yielded the test statistic z = 2.17. Find and interpret the p-value for the test.

Arresting shoplifters. Shoplifting in the United States costs retailers about $35 million a day. Despite the seriousness of the problem, the National Association of shoplifting Prevention (NASP) claims that only 50% of all shoplifters are turned over to police (www.shopliftingprevention.org). A random sample of 40 U.S. retailers were questioned concerning the disposition of the most recent shoplifter they apprehended. A total of 24 were turned over to police. Do these data provide sufficient evidence to contradict the NASP?

a. Conduct a hypothesis test to answer the question of interest. Use\(\alpha = 0.05\).

b. Is the sample size large enough to use the inferential procedure of part a?

c. Find the observed significance level of the hypothesis test in part a. Interpret the value.

d. For what values \(\alpha \) would the observed significance level be sufficient to reject the null hypothesis of the test you conducted in part b?

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