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P-Values. In Exercises 17鈥20, do the following:

a. Identify the hypothesis test as being two-tailed, left-tailed, or right-tailed.

b. Find the P-value. (See Figure 8-3 on page 364.)

c. Using a significance level of = 0.05, should we reject H0or should we fail to reject H0?

The test statistic of z = -2.50 is obtained when testing the claim that p<0.75

Short Answer

Expert verified

a. The test is left-tailed.

b. The p-value is equal to 0.0062.

c. The null hypothesis is rejected.

Step by step solution

01

Given Information

A test statistic value of z=-2.50 is obtained, and the claim to be tested is p<0.75.

02

Identify the hypotheses and tail of the test

a.

In correspondence with the given claim, the following hypotheses are set up:

Null Hypothesis: p=0.75

Alternative Hypothesis: p<0.75

Since there is a lesser than sign in the alternative hypothesis, the test is left-tailed.

03

P-value

b.

The test statistic to test the given claim is the z-value.

The z-value is equal to -2.50.

Using the standard normal table, the corresponding left-tailed p-value for z-score equal to -2.50 is equal to:

Pz<-2.50=0.0062

Thus, the p-value is equal to 0.0062.

To depict the p-value on the standard normal probability graph, follow the given steps:

  • Plot a horizontal axis representing the z-score. Also, label it as 鈥渮-score鈥.
  • Sketch a bell-shaped curve and draw a vertical dotted line corresponding to the value 鈥0鈥 on the horizontal axis
  • Mark the point 鈥-2.5鈥 on the horizontal axis and then shade the area to the left of the value 鈥-2.5鈥 with blue as shown in the figure.
  • Label the shaded region as 鈥減-value = 0.0062鈥.

The plot below shows the p-value as the shaded area under the standard normal probability graph:

04

Decision about the test

c.

If the p-value is less than the level of significance, the null hypothesis is rejected; otherwise, not.

Here, the level of significance is equal to 0.05, and the p-value is equal to 0.0062.

Since the p-value is less than 0.05, the null hypothesis is rejected.

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