Why can't we increase the level of significance indefinitely?
Why can't we increase the level of significance indefinitely?
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Ans:
The level of significance is defined as the probability of rejecting a null hypothesis by the test when it is really true, which is denoted as α. That is, P (Type I error) = α.
If higher level of significance is used then it would be easy for an estimate to look significant even when it is actually not. This can lead to fall in reliability on estimates.
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