Consider conducting a hypothesis test in which the null and

Consider conducting a hypothesis test in which the null and alternative hypotheses are: Where c is some hypothesized value. Suppose the significance level is 0.1, the test statistic is positive, and the statistical decision is to FTR Ho. If we redo the test at a = 0.025, our statistical decision would be:

Solution

A 0.025 level is stricter than a 0.1 level when it comes to rejecting the null hypothesis.

Thus, if you fail to reject at 0.1 level, the you WOULD ALSO FAIL TO REJECT AT 0.025 LEVEL.

[ANSWER, FAIL TO REJECT HO]