Q 358. Generally accepted confidence level for any statistical test is 95%. Are there any situations that warrant a change in the confidence level? Provide relevant examples. Note for website visitors - Two questions are asked every week on this platform. One on Tuesday and the other on Friday. All questions so far can be seen here - https://www.benchmarksixsigma.com/forum/lean-six-sigma-business-excellence-questions/ Please visit the forum home page at https://www.benchmarksixsigma.com/forum/ to respond to the latest question open till the next Tuesday/ Friday evening 5 PM as per Indian Standard Time. Questions launched on Tuesdays are open till Friday and questions launched on Friday are open till Tuesday. The best answer is always shown at the top among responses and the author finds honorable mention in our Business Excellence dictionary at https://www.benchmarksixsigma.com/forum/business-excellence-dictionary-glossary/ along with the related term

Message added by Mayank Gupta, April 23, 20215 yr

Confidence Level is the probability of accepting the Null Hypothesis (Ho) when it is actually true or in other words it is the probability of NOT committing a Type I error. It tells you how sure you can be. Confidence Level is calculated as (1-α) where α is the probability of committing a Type I error (also called as Significance level).

An application-oriented question on the topic along with responses can be seen below. The best answer was provided by Mohamed Essam on 21st Apr 2021.

Applause for all the respondents - Mohamed Essam, Sandeep Gambhirrao

Confidence Level

Followers

April 20, 20215 yr

Q 358. Generally accepted confidence level for any statistical test is 95%. Are there any situations that warrant a change in the confidence level? Provide relevant examples.

Note for website visitors - Two questions are asked every week on this platform. One on Tuesday and the other on Friday.

All questions so far can be seen here - https://www.benchmarksixsigma.com/forum/lean-six-sigma-business-excellence-questions/
Please visit the forum home page at https://www.benchmarksixsigma.com/forum/ to respond to the latest question open till the next Tuesday/ Friday evening 5 PM as per Indian Standard Time. Questions launched on Tuesdays are open till Friday and questions launched on Friday are open till Tuesday.
The best answer is always shown at the top among responses and the author finds honorable mention in our Business Excellence dictionary at https://www.benchmarksixsigma.com/forum/business-excellence-dictionary-glossary/ along with the related term

Solved by Mohamed Essam

April 21, 20215 yr

Go to solution

April 21, 20215 yr

Solution

Situation which are more dangerous or severe may need >=99% confidence level

Ex. Surgery Operations, Aircraft Industry.

New Drugs Experiments (e.g. Vaccine)

April 21, 20215 yr

The medical application is generally expects highest confidence level. This is because of the risk involved in the field. Any drug development generally checks side effects with the greter confidence interval whereas effectiveness can be less than 95%

5 yr5 yr Rohit Gandhi locked this topic

April 23, 20215 yr

A lot of answers to this question spoke about Confidence Interval instead of Confidence Level. However the question was on Confidence Level and not Confidence Interval and hence could not be approved for publication. Maybe we will come up with a question to highlight the difference between the two. But that's for later.

Mohamed Essam has provided the best answer to this question. Short and simple!