Consider that we have an estimator 0 for a parameter 0. We want to test the hypothesis that 0 = 5. What does it mean to set a significance level of 5%? O We set to 5% the probability to accept the hypothesis that 0 = 5 when 0 = 5 is true O We set to 5% the probability to reject the hypothesis that 0 = 5 when 0 = 5 is true O We set to 5% the probability to accept the hypothesis that 0 = 5 when 0 = 5 is false O We set to 5% the probability to reject the hypothesis that 0 = 5 when 0 = 5 is false

MATLAB: An Introduction with Applications
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ISBN:9781119256830
Author:Amos Gilat
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Consider that we have an estimator 0 for a parameter 0. We want to test the hypothesis that 0 = 5. What does it mean
to set a significance level of 5%?
We set to 5% the probability to accept the hypothesis that 0 = 5 when e = 5 is true
O We set to 5% the probability to reject the hypothesis that e = 5 when e = 5 is true
O We set to 5% the probability to accept the hypothesis that 0 = 5 when 0 = 5 is false
%3D
O We set to 5% the probability to reject the hypothesis that 0 = 5 when 0 = 5 is false
Transcribed Image Text:Consider that we have an estimator 0 for a parameter 0. We want to test the hypothesis that 0 = 5. What does it mean to set a significance level of 5%? We set to 5% the probability to accept the hypothesis that 0 = 5 when e = 5 is true O We set to 5% the probability to reject the hypothesis that e = 5 when e = 5 is true O We set to 5% the probability to accept the hypothesis that 0 = 5 when 0 = 5 is false %3D O We set to 5% the probability to reject the hypothesis that 0 = 5 when 0 = 5 is false
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