If you use a 0.01 level of significance in a (two-tail) hypothesis test, the dec
ID: 3008047 • Letter: I
Question
If you use a
0.01
level of significance in a (two-tail) hypothesis test, the decision rule for rejecting
H 0 : u = 13.9, if you use the Z test, is shown below.Reject H0 if ZSTAT < 2.58 or ZSTAT > +2.58
What is your decision if ZSTAT = -2.19?
A.
Since
ZSTAT
falls into the
nonrejectionnonrejection
region,
do not rejectdo not reject
Upper H 0 .H0.
B.
Since
ZSTAT
falls into the
rejectionrejection
region,
do not rejectdo not reject
Upper H 0 .H0.
C.
Since
ZSTAT
falls into the
rejectionrejection
region,
rejectreject
Upper H 0 .H0.
D.
Since
ZSTAT
falls into the
nonrejectionnonrejection
region,
rejectreject
Upper H 0 .H0.
Explanation / Answer
Given
Reject H0 if ZSTAT is lessthan 2.58 or ZSTAT greaterthan +2.58.i.e.,if ZSTAT is in between 2.58 and +2.58 then do not reject H0
Given case is if ZSTAT = -2.19
-2.19 is greaterthan 2.58 and lessthan +2.58.It is in between those two.
So,
ZSTAT falls into the nonrejection nonrejection region, do not rejectdo not reject Upper H 0 .H0.