Question

How do you choose the level of significance when doing a hypothesis?

Answer 1

Default level is `\alpha = 0.05`

Explanation:

We can use any level of significance, it all depends on our tolerance for type 1 error. For example, in research papers published in physics journals, the significance level is usually extremely low, of the order of 1 in a million (5 sigma level). But for practical purposes, for example, for diagnosing a disease, a test significant at level of `\alpha = 0.1` is also considered seriously, and further tests are done.

But if there is no preference, the default level is usually taken as `\alpha = 0.05`