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Find the rejection region (for the standardized test statistic) for each hypothesis test. Identify the test as left-tailed, right-tailed, or two- tailed. a. \(\quad H 0: \mu=-62\) Vs. Ha: \(\mu \neq-62 @ \alpha=0.005\). b. \(\quad H_{0}: \mu=73\) VS. Ha: \(\mu>73 @ \alpha=0.001\). c. \(\quad H 0: \mu=1124\) VS. Ha: \(\mu<1124 @ \alpha=0.001\). d. \(\quad H 0: \mu=0.12\) VS. Ha: \(\mu \neq 0.12 @ \alpha=0.001\).

Short Answer

Expert verified
a: Two-tailed, \(Z < -2.807\) or \(Z > 2.807\); b: Right-tailed, \(Z > 3.090\); c: Left-tailed, \(Z < -3.090\); d: Two-tailed, \(Z < -3.291\) or \(Z > 3.291\).

Step by step solution

01

Identify the test type (a)

The null hypothesis is \(H_0: \mu = -62\) and the alternative hypothesis is \(H_a: \mu eq -62\). This is a two-tailed test because the alternative hypothesis includes \(\mu eq -62\).
02

Determine the rejection region (a)

For a two-tailed test with \(\alpha = 0.005\), split the significance level equally on both tails, which means \(\alpha = 0.0025\) on each tail. Use the standard normal distribution table to find the critical values that correspond to this area. The critical values are approximately \(Z = \pm 2.807\). So, the rejection region is \(Z < -2.807\) or \(Z > 2.807\).
03

Identify the test type (b)

The null hypothesis is \(H_0: \mu = 73\) and the alternative hypothesis is \(H_a: \mu > 73\). This is a right-tailed test since the alternative hypothesis includes \(\mu > 73\).
04

Determine the rejection region (b)

For a right-tailed test with \(\alpha = 0.001\), the rejection region corresponds to a Z-value where the area to the right is 0.001. The critical value from the standard normal distribution table for \(\alpha = 0.001\) is approximately \(Z = 3.090\). Hence, the rejection region is \(Z > 3.090\).
05

Identify the test type (c)

The null hypothesis is \(H_0: \mu = 1124\) and the alternative hypothesis is \(H_a: \mu < 1124\). This is a left-tailed test since the alternative hypothesis includes \(\mu < 1124\).
06

Determine the rejection region (c)

For a left-tailed test with \(\alpha = 0.001\), the rejection region corresponds to a Z-value where the area to the left is 0.001. The critical value from the standard normal distribution table for \(\alpha = 0.001\) is approximately \(Z = -3.090\). Thus, the rejection region is \(Z < -3.090\).
07

Identify the test type (d)

The null hypothesis is \(H_0: \mu = 0.12\) and the alternative hypothesis is \(H_a: \mu eq 0.12\). This is a two-tailed test because the alternative hypothesis includes \(\mu eq 0.12\).
08

Determine the rejection region (d)

For a two-tailed test with \(\alpha = 0.001\), split the significance level equally, giving \(\alpha = 0.0005\) on each tail. Using the standard normal distribution table, the critical values that correspond to this area are approximately \(Z = \pm 3.291\). Therefore, the rejection region is \(Z < -3.291\) or \(Z > 3.291\).

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Key Concepts

These are the key concepts you need to understand to accurately answer the question.

Rejection Region
In hypothesis testing, the rejection region is a critical concept that helps us decide when to reject the null hypothesis. This method simplifies decision-making by setting a threshold, or boundaries, beyond which the null hypothesis is considered implausible.
For each type of test in hypothesis testing, there is a corresponding rejection region:
  • For a **two-tailed test**, the rejection zone is split between the two tails of the probability distribution. Each tail captures extreme outcomes far from what we expect under the null hypothesis.For example, in test (a), with a significance level of \(\alpha = 0.005\), the rejection region is found at the extremes of the normal distribution, specifically \(Z < -2.807\) or \(Z > 2.807\).
  • For a **right-tailed test**, the rejection area is only in the right tail of the distribution. This kind of test looks for outcomes significantly higher than expected under the null hypothesis. As in test (b), with \(\alpha = 0.001\), you reject the null hypothesis if \(Z > 3.090\).
  • For a **left-tailed test**, the rejection area only lies in the left tail, indicating a focus on observing significantly lower outcomes. In test (c), with \(\alpha = 0.001\), the region is \(Z < -3.090\).
Understanding and correctly identifying the rejection region is key for making informed decisions in hypothesis testing. By determining the appropriate boundaries based on the test type and your alpha level, you ensure that your inference follows the strict parameters dictated by your study's design.
Standardized Test Statistic
The standardized test statistic is an essential part of hypothesis testing, guiding us in comparing our sample data to the null hypothesis.
Also known as the Z-score in this context, it measures the number of standard deviations a data point is from the mean population value specified in the null hypothesis. Here’s a brief look at what it does and why it’s critical:
  • **Comparison tool**: It provides a common scale to compare sample means to population means, as calculated under the null hypothesis conditions, allowing for uniform interpretation across different scenarios.
  • **Simple to use**: The formula for Z-score is: \[Z = \frac{(\bar{x} - \mu_0)}{(\sigma/\sqrt{n})}\]where \(\bar{x}\) is the sample mean, \(\mu_0\) is the population mean under the null hypothesis, \(\sigma\) is the population standard deviation, and \(n\) is the sample size.
  • **Establishes relationship**: When the Z-score falls within the rejection region, this signifies that the sample provides sufficient evidence against the null hypothesis.
Understanding how to calculate and interpret the Z-score is crucial as it forms a fundamental part of your hypothesis testing toolkit.
Significance Level
The significance level, denoted as \(\alpha\), is a probability threshold that defines how extreme your test statistic must be to reject the null hypothesis. It represents the maximum risk you are willing to take of making a Type I error—incorrectly rejecting a true null hypothesis.
Here's why it's important:
  • **Pre-test decision**: The \(\alpha\) level is chosen before conducting the test, providing a benchmark against which to measure the results.
  • **Expresses threshold of doubt**: A common choice is \(\alpha = 0.05\), but it can be more strict, such as \(\alpha = 0.001\), depending on the consequences of errors. For instance, tests (b), (c), and (d) in the exercise use a stringent \(\alpha = 0.001\) to minimize false positives.
  • **Integral to hypothesis testing**: It helps in formulating the critical values, beyond which observed results lead to the rejection of the null hypothesis.
Regardless of its level, the significance level ensures that hypothesis testing remains consistent in balancing sensitivity and specificity.
Critical Value
Critical values are the boundaries of the rejection region for hypothesis tests. They correspond to the chosen significance level and tell us where the rejection region begins—excellent tools in statistical inference.
A deeper dive into critical values includes:
  • **Calculated from distribution**: They often come from a standard normal distribution (Z-distribution) or t-distribution tables based on the test type and \(\alpha\).
  • **Directly ties to significance level**: As seen in the exercise, different \(\alpha\) levels determine the critical values. For a two-tailed test with \(\alpha = 0.001\), like test (d), the critical values are around \(Z = \pm 3.291\).
  • **Benchmark setting**: Critical values help establish benchmarks for determining if the observed statistic is inherently rare enough to fall into the rejection region.
Knowing how to find and use critical values is essential for statisticians and researchers, as they are the standards by which results are judged in hypothesis testing.

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Most popular questions from this chapter

Under what circumstance is a test of hypotheses certain to yield a correct decision?

A magazine publisher tells potential advertisers that the mean household income of its regular readership is $$\$ 61,500.$$ An advertising agency wishes to test this claim against the alternative that the mean is smaller. A sample of 40 randomly selected regular readers yields mean income $$\$ 59,800$$ with standard deviation $$\$ 5,850.$$ Perform the relevant test at the \(1 \%\) level of significance.

Perform the indicated test of hypotheses, based on the information given. a. Test \(\mathrm{Ho}: \mu=212\) vs. Ha: \(\mu<212 @ \alpha=0.10, \sigma\) unknown, \(n=36, x-211.2, \mathrm{~s}=2.2\) b. Test \(H_{0}: \mu=-18\) vs. Ha: \(\mu>-18\) \(@ \alpha=0.05, \sigma=3.3, n=44, x-=-17.2, s=3.1\) c. Test \(H_{0}: \mu=24\) vs. Ha: \(\mu \neq 24 @ \alpha=0.02, \sigma\) unknown, \(n=50, x-=22.8, s=1.9\)

An insurance company states that it settles \(85 \%\) of all life insurance claims within 30 days. A consumer group asks the state insurance commission to investigate. In a sample of 250 life insurance claims, 203 were settled within 30 days. a. Test whether the true proportion of all life insurance claims made to this company that are settled within 30 days is less than \(85 \%,\) at the \(5 \%\) level of significance. b. Compute the observed significance of the test.

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