level of significance in practice - hypothesis testing hypothesis, error, testing, standard, practice

cmacedo

Anyone know if 5% is a standard level of significance used in practice for hypothesis testing?

I know that we can also use 1% or 10%, but 5% seems to be the norm in CFAI and Schweser books to gauge the probability of Type I error (i.e. reject when hypothesis is true).

Thanks.

Kiakaha

Practically speaking I've predominantly seen the 95% and 99% being quoted in real financial data. 95% even more so.