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Chapter 8: Q, 9 (page 392)

Suppose that you want to conduct a left-handed hypothesis test at 5%significance level. How much the critical value be chosen?

Short Answer

Expert verified

The critical value to be chosen is -1.645.

Step by step solution

01

Step 1. Finding the critical value

If the null hypothesis is true, the probability equals to 0.05that the test statistic will fall in the rejection region, in this case, to the left of the critical value.

The critical value for a left-tailed test are -z伪. By using the standard normal tables we find the critical values. Because 伪=0.05, the critical value is -z0.05=-1.645is shown in the figure below.

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