Question

In a two-tailed 2-sample z-test you find a P-Value of 0.0278. At what level of significance would you choose to reject the null hypothesis?

Answer 1

Answer:

5% or 0.05

Step-by-step explanation:

The null hypothesis will be rejected if p-value is less than significance level.

The null hypothesis can be rejected on 5% and 10% level of significance, but 5% level of significance is a suitable choice because when the 5% significance level is used the confidence level is 95% where as in case of 10% the confidence level is 90%. In short, the significance level indicates the probability of rejection of null hypothesis when the null hypothesis is true and the lesser probability of taking that risk will be better.

So, the scenario indicates the suitable significance level as 0.05.