Question

Threshold value for significance used in hypothesis testing is
[Question ID = 1428]

• A. Estimator
• B. Point estimate
• C. Standard error
• D. Critical value

Hint:

The Critical value depends on two things: your chosen alpha level ($\alpha$) and the "degrees of freedom." If your calculated $t$-value exceeds the critical $t$-value, your result is "statistically significant."

Answer 1

The Correct Option is D

Step 1: Understanding the Question:
The question asks for the statistical term used to describe the boundary or threshold that decides whether the null hypothesis should be rejected at a given level of significance.

Step 2: Detailed Explanation:

• Hypothesis Testing: In statistics, we test a null hypothesis ($H_0$). We choose a "level of significance" ($\alpha$), commonly $0.05$ or $0.01$.

• Critical Value: Based on the chosen $\alpha$ and the distribution (e.g., $Z$, $t$, or $F$ distribution), we find a threshold value from statistical tables. This is the Critical Value.

• Decision Rule: If the calculated test statistic (from the data) is greater than the critical value (in a right-tailed test), we reject the null hypothesis. The critical value separates the "rejection region" from the "acceptance region."

• Other Options:
- Estimator: A rule or formula for estimating a parameter.
- Point estimate: A single numerical value used to estimate a population parameter.
- Standard error: The standard deviation of a sampling distribution.

Step 3: Final Answer:
The threshold value is the Critical value.