Corresponding to every 100(1-
𝛼
)% confidence level is a number
𝛼
that is called a significance level.

Determine the significance level
𝛼
that corresponds to a 95% Confidence Level.

c07.p059.q017

Question

Corresponding to every  100(1-
𝛼
)% confidence level is a number 
𝛼
 that is called a significance level.

Determine the significance level 
𝛼
 that corresponds to  a 95% Confidence Level.

c07.p059.q017

BlackTom AI · Accepted Answer

The question relates confidence level to the significance level α. In statistical inference, the confidence level (CL) and the significance level are linked by the relation CL = (1 − α) × 100%. This means that the portion of the probability not covered by the confidence interval is equal to α. For a 95% confidence level, we set 95% = (1 − α) × 100%. Solving for α gives α = 1 − 0.95 = 0.05. Hence the significance level is 0.05.

To check the arithmetic from another angle: since 95% confidence implies a 5% tail probability split (often two tails in a two-sided test), the total α across the tails sums to 0.05. Therefore α = 0.05 is the correct interpretation.

Note that the value is typically expressed as 0.05 in decimal form, which matches the standard convention used in hypothesis testing and confidence interval construction. If one prefers percentages, α would be 5%.

There are no answer choices provided in the prompt, but the core concept remains that a 95% CL corresponds to α = 0.05.

BTRY3010/BTRY5010/STSCI2200/STSCI5200 Lecture #20 ( 92 - 93, 99 - 101 )

Corresponding to every 100(1- 𝛼 )% confidence level is a number 𝛼 that is called a significance level. Determine the significance level 𝛼 that corresponds to a 95% Confidence Level. c07.p059.q017

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