Select the appropriate action for these scenarios A Reject

Select the appropriate action for these scenarios -

A. Reject H₀

B. Do not reject H₀

1. The test statistic for a right-tailed hypothesis test for the mean is t = 1.81. The sample size is 20 and prescribed confidence level is 95%.

2. The p-value for a hypothesis test is p = 0.004.

Solution

1.

The p value for a right tailed test at t = 1.81 and df = 20-1 = 19 is

p = 0.0431.

Here, the significance level is 1-0.95 = 0.05.

Thus, as p < 0.05, we should REJECT HO.[ANSWER, OPTION A]

**************************

2. Again, as p = 0.004 is very small. Usually, the significance levels are 0.10, 0.05, 0.01.

Thus, most often, p = 0.004 is less than any usual significance level. We usually reject it.

Does the problem really not indicate the significance level? Strictly, we cannot conclude on this, as we need to know the significance level.

However, if it is also 0.05 like problem 1, WE REJECT HO. [ANSWER, OPTION A]