When the confidence level of a test is increased which of the following will happen -
No effect on significance
Previously insignificant value becomes significant
Previously significant value becomes insignificant
No change in hypothesis
Ans. is 'b' i.e., Previously insignificant values because significant o If you increases the confidence level the values which were previously out side the confidence interval will also come into that interval. o For example : ? i) If confidence level is 95% --> 95% of total sample will be distributed within confidence limits and 5% data will remain outside the confidence limit. ii) Now you have increased the confidence level to 99% 99% of data will be distributed within the confidence limits and 4% will remain outsite. So 4% more data will become significant. You can also see by formula Confidence limit = 1 - Significance level or Significance level = 1 - Confidence limit So, If confidence level increases, significance level decreases, and you know : ? "The smaller the significance level (p value), the more significant the result said to be".