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    Hi... what's the definition of 'level of significance' in hypothesis testing and what's the difference between that and 'actual significance level'?
    Pretty pretty please answer quick as I need instant help!
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    (Original post by braindead1997)
    Hi... what's the definition of 'level of significance' in hypothesis testing and what's the difference between that and 'actual significance level'?
    Pretty pretty please answer quick as I need instant help!
    definitely very bad at stats but this is how I understand it

    significance level
    is the benchmark set
    e.g H0 is unlikely if the probability falls below a cetain level say 5%


    actual significance is the probability of rejecting the H0 incorrectly

    PS I stand corrected
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    (Original post by TeeEm)
    definitely very bad at stats but this is how I understand it

    significance level
    is the benchmark set
    e.g H0 is unlikely if the probability falls below a cetain level say 5%


    actual significance is the probability of rejecting the H0 incorrectly

    PS I stand corrected
    Ahhh.... ok... i understand actual level of significance but can you further explain level of significance a bit?? sorry for being a bother!!
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    (Original post by braindead1997)
    Ahhh.... ok... i understand actual level of significance but can you further explain level of significance a bit?? sorry for being a bother!!
    significance is the likelyhood(probability) of getting it wrong and reject H0 when in fact H0 is true
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    (Original post by braindead1997)
    Ahhh.... ok... i understand actual level of significance but can you further explain level of significance a bit?? sorry for being a bother!!
    I think that the level of significance is what you're defining as 'very unlikely'.

    If your significance level was 5%, then you'd reject H_0 if an event that had less than a 5% chance of occuring occured. You either have a type 1 error (don't worry about that in S2) or your model is not right.

    You can't always have exactly 5% so you can choose values which are as close to that as possible, and the actual level of significance is the probablity of getting the values that would lead to you rejecting H_0.
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    (Original post by TeeEm)
    significance is the likelyhood(probability) of getting it wrong and reject H0 when in fact H0 is true
    Yay!! Now i understand it! Thanks a bunch... I've got an S2 exam tomorrow and I've had difficulty understanding this!!
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    (Original post by braindead1997)
    Yay!! Now i understand it! Thanks a bunch... I've got an S2 exam tomorrow and I've had difficulty understanding this!!
    good luck tomorrow
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    (Original post by SeanFM)
    I think that the level of significance is what you're defining as 'very unlikely'.

    If your significance level was 5%, then you'd reject H_0 if an event that had less than a 5% chance of occuring occured. You either have a type 1 error (don't worry about that in S2) or your model is not right.

    You can't always have exactly 5% so you can choose values which are as close to that as possible, and the actual level of significance is the probablity of getting the values that would lead to you rejecting H_0.
    Thank you so much... I understand it much better now!!
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    (Original post by TeeEm)
    good luck tomorrow
    Thanks!!! Gonna need that!!
 
 
 
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