3 If you use a 001 level of significance in a twotailed hypo

3. If you use a 0.01 level of significance in a two-tailed hypothesis test, what will you decide if Zstat = -2.61? = 12.5.

Solution

alpha = 0.01

like is a 2 tailed test

alpha / 2 = 0.005

so we find the critical value in Z tables

critical value is +/- 2.57

so we will reject Ho if Z> 2.57 or Z< -2.57

we have a value of Z = -2.61

so that value is in the rejection region because Z < -2.57

so we reject Ho

miu is different of 12.5