What is the significance level most commonly used in research studies?

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Study for the Peregrine MBA Exam. Test your knowledge with flashcards and multiple choice questions, each with explanations. Get ready for your MBA exam!

The most commonly used significance level in research studies is 0.05. This significance level, also known as alpha, indicates a 5% risk of concluding that a difference exists when there is no actual difference (Type I error). Researchers frequently adopt this threshold because it balances the risks of false positives and false negatives, making it a suitable choice for many fields, including psychology, medicine, and social sciences.

Using 0.05 allows researchers to have a strong enough level of confidence in their findings while still being reasonably stringent. It has become a conventional standard, and many journals and academic fields endorse this significance level for hypothesis testing. By setting a significance level at 0.05, researchers can draw conclusions about their data while also ensuring that their findings are robust and less likely to be due to random chance.

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