Use the Following Information to Answer the Question

Multiple Choice

Use the following information to answer the question. A janitor at a large office building believes that his supply of light bulbs has too many defective bulbs. The janitor's null hypothesis is that the supply of light bulbs has a defect rate of p = 0.07 (the light bulb manufacturer's stated defect rate) . Suppose he does a hypothesis test with a significance level of 0.05.
Symbolically, the null and alternative hypothesis are as follows: H₀: p = 0.07 and H_a: p > 0.07.
-Choose the statement that best describes the significance level in the context of the hypothesis test.

A) The significance level of 0.05 is the defect rate we believe is the true defect rate.
B) The significance level of 0.05 is the probability of concluding that the defect rate is equal to 0.07 when in fact it is greater than 0.07.
C) The significance level of 0.05 is the test statistic that we will use to compare the observed outcome to the null hypothesis.
D) The significance level of 0.05 is the probability of concluding that the defect rate is higher than 0.07 when in fact the defect rate is equal to 0.07.