Determine the critical region and values for z that would be

Determine the critical region and value(s) for z that would be used to test the null hypothesis at the given level of significance.

Null hypothesis µ = 20,   Alternative hypothesis µ 20, = 0.02

Solution

It is given that Null hypothesis µ = 20,   Alternative hypothesis µ 20, = 0.02

Now, the critical region is plus minus 2.33, that is reject the null hypothesis if the test statistic z<-2.33 or z>2.33

The critical value is 2.33.