Erik
Yes - this possibly conflates a number of different conventions:
1. We usually use the 95% range - which is likely to be exceeded in ~ 5% of cases.
2. For this reason the agreement index thresholds were set to fail at a similar point - so you would expect ~ 5% of these to report a warning.
3. When using formal outlier analysis, in the absence of any other information we often choose 5% as an outlier probability.
This is ultimately rather circular and there could be other things at play. However from experience it seems about right. In general dates on known age material fit a normal distribution fairly well at 1 and 2 sigma but less well at 3 and by 4 or 5 sigma there are certainly more outliers than you would expect. So partly this level masks the fact that our uncertainties are slightly longer-tailed than Normal. All this depends on what you are dating and how.
Christopher
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