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The standardized test statistic for a test of H0:p=0.4versus Ha:pnotequalto0.4isz=2.43This test is

a. not significant at either =0.05or =0.01

b. significant at =0.05but not at=0.01

c. significant at=0.01but not at =0.05

d. significant at both =0.05and=0.01

e. inconclusive because we don鈥檛 know the value of p^

Short Answer

Expert verified

The test is significant at =0.05and =0.01

The correct option is(b)

Step by step solution

01

Given information

z=2.43

Level of significance ()=0.05/0.01

The null and alternative hypotheses are as follows:

H0:p=0.4Ha:pisnotequalto0.4

02

The objective is to find the test statistics values at which test is significant 

The -value can be computed as:

p-value=2P(Z>z)=2P(Z>2.43)=20.0075=0.0150

If the null hypothesis is rejected, the test will be significant.

If the p-value>null hypothesis is rejected.

p-value(0.0150)<(0.05)=Reject the null hypothesis

p-value(0.0150)>(0.01)=Fail to reject the null hypothesis

At =0.05the test is considered significant.

Therefore, the correct option is(b)

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