A twotailed test is conducted at the 5 significance level Wh

A two-tailed test is conducted at the 5% significance level. What is the P-value required to reject the null hypothesis? Wo-tailed test is conducted at the 5% significance level, the P-value required to reject the null hypothesis is less than 0.05. I dont understand this question.

Solution

When a two tailed test is conducted we put null and alternate hypothesis as

H0:test statistic = population parameter

Ha:test statistic not equal population parameter

This is a two tailed test for comparison of test statistic with pop parameter.

We find prob that test statistic as difference in the two/std error

If p value for the statistic is less than sign. level here 0.05, then the test statistic is in rejection region hence we reject null hypothesis.

Otherwise if p>0.05 we accept null hypothesis.

Thus 0.05 or 5% is the upper limit for p value to take to reject null hypothesis.