Posted by barty on .
H0: pi<=.60 versus H1:pi>=.60, alpha:.05
I really don't get where Alpha is involved, pls help.
This level .05 determines where to reject the null (H0). If the test statistic for a hypothesis test is calculated and ends up exceeding the level .05, the null will be rejected in favor of the alternate hypothesis (H1). If the test statistic does not exceed the level .05, the null cannot be rejected.
I hope this helps and is what you were asking.