When conducting a significance test in practice, how should you choose the alpha level?

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When conducting a significance test in practice, how should you choose the alpha level?

  • Use a larger alpha when the consequences of mistakenly rejecting the null hypothesis are more serious.
  • Always use alpha=0.05 since it’s the most appropriate for every situation.
  • Always use alpha=0.05 since it’s the most commonly used one.
  • Use a smaller alpha when the consequences of mistakenly rejecting the null hypothesis are more serious.

Answer: When conducting a significance test in practice use a smaller alpha when the consequences of mistakenly rejecting the null hypothesis are more serious.

Explanation

When the consequences of mistakenly rejecting the null hypothesis are more serious, then you should reject the null hypothesis less often (in general) and this occurs when you decrease the significance level alpha (as alpha is the probability of rejecting the null hypothesis when the null hypothesis is true).

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