Q.17

Question

Explain in plain language why a significance test that is significant at the 1% level must always be significant at the 5% level. If a test is significant at the 5% level, what can you say about its significance at the 1% level?

Step-by-Step Solution

Verified
Answer

It is not known the significance at 1%level.

1Step 1: introduction

the significance level is an outcome that has measurable importance when having happened given the invalid hypothesis is far-fetched

2Step 2: explanation

Given,

significance levels are 1%and 5% which is 0.01 and 0.05

When the significant level is 0.05,

The null hypothesis is true as the probability of getting the sample value is less than 0.05

The probability is either greater or less than 0.01

Hence It is not known the significance at 1%level.