How to Determine the Appropriate Significance Level?
Determining the appropriate significance level depends on several factors:
1. Industry Standards: Most marketers often use a 0.05 significance level, but this can vary depending on the industry and the stakes involved. 2. Risk Tolerance: If making a wrong decision has high consequences, you might want to set a lower significance level (e.g., 0.01). 3. Sample Size: Larger sample sizes can allow for smaller significance levels because they provide more reliable data.