Significance Level

1
Significance Level

• There is no sharp border between statistically
  significant and statistically insignificant only
  increasingly strong evidence as the P-value
  decreases.

2
Critical value
3
Statistical significance ? practical importance
4
(No Transcript)
5
Jury Trial
Type I error would be to convict when the
defendant is innocent. Type II error would be
acquit when the defendant is guilty.
6
(No Transcript)
7
Type I Error

• a the probability of a
• type I error

8
Type II Error
9
(No Transcript)
10
(No Transcript)
11
(No Transcript)
12
(No Transcript)
13
Power of the Test

• The probability that a fixed level a significance
  test will reject the null hypotheses when a
  particular alternative value of the parameter is
  true.