Distinguish between the significance level and the confidence level? - Answers

The significance level, often denoted as alpha (α), is the probability of rejecting the null hypothesis when it is actually true, typically set at values like 0.05 or 0.01. In contrast, the confidence level refers to the percentage of times that a confidence interval would contain the true population parameter if the same sampling procedure were repeated multiple times, commonly expressed as 90%, 95%, or 99%. Essentially, the significance level relates to hypothesis testing, while the confidence level pertains to estimation through intervals. Both concepts are fundamental in inferential statistics but serve different purposes in data analysis.