If a 95% confidence level is used, what is α?

Unlock all questions

This demo includes only 20 questions. Upgrade to access hundreds of questions, flashcards, exam simulations, and disable ads.

Full question bankExam simulationsFlashcards
From $9.99Unlock all

Prepare for the Quantitative Business Analysis Exam 3 with interactive quizzes and comprehensive explanations. Dive into multiple choice questions that will help solidify your understanding and boost your confidence before test day!

Multiple Choice

If a 95% confidence level is used, what is α?

Explanation:
The key idea is that the confidence level and the significance level are complementary: Confidence level = 1 minus α. So a 95% confidence level means you’re allowing a 5% chance of error in the long run. In a two-sided interval, that 5% is split between the two tails (2.5% in each tail), but the total α remains 0.05. Therefore α equals 0.05.

The key idea is that the confidence level and the significance level are complementary: Confidence level = 1 minus α. So a 95% confidence level means you’re allowing a 5% chance of error in the long run. In a two-sided interval, that 5% is split between the two tails (2.5% in each tail), but the total α remains 0.05. Therefore α equals 0.05.

More Multiple Choice Questions
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy