Discussion
Which one of the following is the standard level of testing the significance of hypothesis test ?
Answer: C
The standard level for testing the significance of a hypothesis is 0.05.
A significance level of 0.05 means a 5 per cent risk of rejecting a true null hypothesis. It is the level used by convention in social science and management research, with 0.01 used when stricter proof is needed.
The levels of 0.10 and 0.20 are too loose and are not standard for a final test, and 0.01 is the stricter level used only for special cases, so the standard one is 0.05.
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