Explain the concepts of the level of significance and rejection region using a suitable diagram of a standard normal curve.

The level of significance (α) is a predefined threshold used in hypothesis testing to determine the probability of rejecting the null hypothesis (H₀) when it is actually true. It represents the maximum allowable risk of committing a Type I error (false positive). Common values for α are 0.01, 0.05, or 0.10.

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