Significance Level (α): The significance level is the probability threshold used to determine whether an observed result is statistically significant or occurred by chance alone. In this case, it would be (1 - confidence level), which is typically denoted as α.
Type I Error: Type I error occurs when we reject the null hypothesis mistakenly. It means concluding there's a significant difference when there isn't one.
Type II Error: Type II error occurs when we fail to reject the null hypothesis incorrectly. It means failing to detect a significant difference when one actually exists.