Chapter 8, Problem 12SE

Law School Grad Employment An economist is testing the hypothesis that the employment rate for law school graduates is different from $86.7\%.$ The economist is using a $5\%$ significance level and these hypotheses: ${\text{H}}_{\text{0}}:p=0.867$ and ${\text{H}}_{\text{a}}:p\ne 0.867$. Explain what the $5\%$ significance level means in context.