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The Level of Significance

The document discusses the level of significance in statistics. The level of significance is the probability of making a Type I error, usually set at 5% or 1%. It is used to determine whether to accept or reject the null hypothesis. Two examples are provided that test hypotheses using a one-tailed test with the level of significance set at 5%.

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1K views8 pages

The Level of Significance

The document discusses the level of significance in statistics. The level of significance is the probability of making a Type I error, usually set at 5% or 1%. It is used to determine whether to accept or reject the null hypothesis. Two examples are provided that test hypotheses using a one-tailed test with the level of significance set at 5%.

Uploaded by

mildred villazar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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The Level of Significance

In Statistics, the dividing line between what is acceptable and not


acceptable is the Level of Significance. It is a level of probability that
separates the sample results that are acceptable and those that are not.
More specifically, it is the level of probability of making a Type I error. The
customary Levels of Significance are 5 % and 1 %

It is donoted by alpha α refers to the degree of significance in which we


accept or reject the null hypothesis.
Maria uses 5% of level of significance in providing that there in no significant
change in the average number of enrollees in the 10 sections for the last two
years.

α= 0.05 is the area under the normal curve


within the rejection region.
One-Tailed and Two-Tailed
Tests
• A barangay chairman feels that, on the whole households in his
barangay, are better-off financially now compared to several years
ago. He feels this because he has observed that mothers seem to be
visiting supermarkets more often and that he has been receiving less
complaints. Furthermore, he knows that a quite a number of
husbands in his barangay have gone abroad to work as OFWs
(overseas foreign workers) where incomes are much higher than
when you are just in the Philippines. He knows from a survey
conducted several years back that the average monthly income in
his barangay was Php 20,000. He decides to find out if the average
monthly income may have possibly increased by taking a sample of
households. He tests his hypothesis.
• The average monthly family income in the barangay has not
changed. (that is, Ho: 𝜇 = 𝑃ℎ𝑝 20,000).
• Alternative Hypothesis: The average monthly family income
has increased (that is, Ha: 𝜇 > 𝑃ℎ𝑝 20,000).
• A university requires an IQ test for all incoming freshmen students
and accepts only those who qualify, with an IQ above the minimum
IQ requirement. It is known that the average IQ of the university’s
freshmen students is 95. However, for economic reasons (on the
part of the university and on the part of the families of students),
the IQ test for incoming first-year students has been suspended for
the past three years. Lately, some teachers have been complaining
that students in their freshmen classes have been getting somewhat
lower grades and this appears to be a persistent claim to find out if
the IQ level of their first-year students has decreased. They take a
sample of freshmen students and test a hypothesis. Let us state the
Null and Alternative Hypotheses:
• Null Hypothesis: The average IQ of freshmen students has not
changed (that is, Ho: 𝜇 = 95).
• Alternative Hypothesis: The average IQ of freshmen of
students has decreased (that is, Ha: 𝜇 < 95). the

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