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Chapter 8: Q24 (page 372)

Critical Values. In Exercises 21鈥�24, refer to the information in the given exercise and do the following.

a. Find the critical value(s).

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

Exercise 20

Short Answer

Expert verified

a. The critical values are -1.96 and 1.96.

b. The decision of the statistical test is to fail to reject the null hypothesis.

Step by step solution

01

Given information

A test statistic value of z=-1.94 is obtained, and the claim to be tested is p=38.

02

Hypotheses and tail of the test

The hypotheses are as follows:

Null Hypothesis: p=38

Alternative Hypothesis: p鈮�38

Since there is a not equal to sign in the alternative hypothesis, the test is two-tailed.

03

Critical value

a.

Referring to the standard normal table, the critical values of z corresponding to the two-tailed test at 伪=0.05are -1.96 and 1.96.

04

Decision about the test

b.

If the absolute value of the test statistic is greater than the critical value, then the null hypothesis is rejected; otherwise, not.

Since the absolute value of the test statistic is less than the critical value, the decision is to fail to reject the null hypothesis.

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Most popular questions from this chapter

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