Question

The rejection or acceptance of a hypothesis is dependent on the statistical interval of the critical values which is dictated by the confidence level or level of significance. A 95% level of confidence means a 0.05 level of significance. Sometimes a hypothesis is rejected at 0.01 but accepted at 0.05. When this happens, which level of significance would you adopt and why.

Answer 1

I would adopt the 0.05 level of significance. This is because the probability of making a type 1 error is small compared to 0.1 level of significance. Again 0.05 is mostly used hence seems standard compared to 0.1. The confidence of reporting results is higher at 0.05 level of significance.