Homework help- Statistics

Question

The test statistic of

zequals=negative 1.68−1.68

is obtained when testing the claim that

pequals=1 divided by 41/4.

a. Using a significance level of

alphaαequals=0.050.05​,

find the critical​ value(s).

b. Should we reject

Upper H 0H0

or should we fail to reject

Upper H 0H0​?

Answer 1

This is a 2-sided test so, if alpha = 0.05, the critical value is, from Excel, norm.s.inv(.975 = 1.96.

We reject if |z| > 1.96. As |z| = 1.68, we fail to reject.