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The probability of rejecting the null hypothesis when it is true, is called :

  • A.Level of confidence
  • B.Level of significance
  • C.Power of the test
  • D.All of the above

Answer: B

The probability of rejecting a true null hypothesis is the level of significance.

Rejecting a null hypothesis when it is true is a Type I error, and the maximum probability of making it that a test allows is the level of significance, α, commonly set at 5% or 1%.

The level of confidence is 1 − α, the probability of correctly retaining a true null hypothesis. The power of the test is 1 − β, the probability of correctly rejecting a false null hypothesis. Since these are three different quantities, 'all of the above' is also wrong.

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