A level u twosided significance test rejects the null hypoth

A level u two-sided significance test rejects the null hypothesis H0 :u = u0 exactly when

A.    the z test statistic differs from m₀.

B.     the value m₀ falls outside a level 1 – a confidence interval for m.

C.     the z test statistic differs from m.

D.    the value m falls outside a level 1 – a confidence interval for m₀.

Solution

The correct option is (B).

The two-sided significance test rejects the null hypothesis when the value m0 falls outside a level 1 – a confidence interval for m.