Glossary

Significance level and Type I / Type II errors

Definition

The significance level α is the maximum risk of a Type I error — rejecting a null hypothesis that is actually true (a false alarm). A Type II error (β) is the opposite: the effect exists but the test misses it. The usual choice is α = 0.05; the power 1 − β says how reliably you detect a real effect.

Foundations & hypothesis testing

The two errors pull against each other: a stricter α means fewer false alarms but more missed real effects. The only way to reduce both is a larger sample or more precise measurement — which is why sample size is planned in advance for a target power (typically 80 %).

With many tests at once (dozens of variables, several groups) the risk of a false alarm grows quickly — with 20 tests at α = 0.05 the chance of at least one falsely significant result is about 64 %. The remedies are corrections (Bonferroni, Holm, FDR) or post-hoc tests that build them in.

In Statistica

Set the significance level for highlighting results in each module; ANOVA and post-hoc tests in Statistica offer multiple-comparison corrections directly (Tukey, Scheffé, Bonferroni). Planning sample size from α and power is handled by the Power Analysis module.

Related terms

Knowledgebase guides

FAQ

Why 0.05?
It is a historical convention (R. A. Fisher). In practice choose α by the cost of an error — 0.10 may be fine for screening, 0.01 for a confirmatory study.
What is FDR?
False discovery rate — the expected share of false positives among significant results. It is used with hundreds of tests (genomics, data mining) instead of the overly strict Bonferroni.

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