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If you use a 0.05 level of significance in a (two-tail) hypothesis test, what wi

ID: 3135521 • Letter: I

Question

If you use a 0.05 level of significance in a (two-tail) hypothesis test, what will you decide if

ZSTAT= -1.56. Determine the decision rule. Select the correct choice below and fill in the answer box(es) within your choice. round to three decimals.

A. Reject H0 if ZSTAT < - _____ or ZSTAT > +_______

B. Reject H0 if ZSTAT <_________

C.Reject H0 if ZSTAT > _______

D. Reject H0_____ < ZSTAT < _______

State your conclusion. Choose the correct answer below.

A.Since ZSTAT falls into the nonrejection region, reject H0.

B. Since ZSTAT falls into the rejection region, do not reject H0.

C. Since ZSTAT falls into the rejection region,reject H0.

D. Since ZSTAT falls into the nonrejection region, do not reject H 0 .

Explanation / Answer

A) IN A TWO TAILED TEST ASSUMING IT TO BE NORMAL AS PER THE QUESTION, FOR THE GIVEN LEVEL OF SIGNIFICANCE = 5% THE REJECTION REGION ACCORDING TO THE Z SCORE =

THE REJECTION REGION Z< -1.96 AND Z > 1.96

HENCE OPTION A IS CORRECT

B) HERE THE VALUE OF Z = -1.56

WHICH IS BIGGER THEN -1.96 AND LESS THAN 1.96 WHICH MEANS THAT THE VALUE Z = -1.56 LIES IN THE NON REJECTION REGION. THEREFORE DO NOT REHECT THE H0.

HENCE OPTION D IS CORRECT