Question

In: Statistics and Probability

For the following questions, state whether you would reject or fail to reject the null hypothesis:...

For the following questions, state whether you would reject or fail to reject the null hypothesis:

  1. Critical value z > 1.96 or z < -1.96

Test value: -2.87

  1. Critical value z > 2.33

Test value: 1.85

  1. Critical value z > 2.33

Test value: -2.87

  1. Two tailed z test with an α=0.05

Test value: 1.85

  1. One tailed z test in the positive direction with an α=0.01

Test value: 8.56

Solutions

Expert Solution

(A) CRITICAL VALUE:

The given critical value is .

DECISION RULE:

TEST VALUE:

The test value is .

INFERENCE:

Since the test statistic value (-2.87) is less than z critical value (-1.96), we reject the null hypothesis.

(B) CRITICAL VALUE:

The given critical value is .

DECISION RULE:

TEST VALUE:

The test value is .

INFERENCE:

Since the test statistic value (1.85) is less than z critical value (2.33), we fail to reject the null hypothesis.

(C) CRITICAL VALUE:

The given critical value is .

DECISION RULE:

TEST VALUE:

The test value is .

INFERENCE:

Since the test statistic value (-2.87) is less than z critical value (2.33), we fail to reject the null hypothesis.

(D) TWO TAILED Z TEST WITH AN :

CRITICAL VALUE:

The z critical value with is .

DECISION RULE:

TEST VALUE:

The test value is .

INFERENCE:

Since the test statistic value (1.85) is less than z critical value (1.96), we fail to reject the null hypothesis.

(E) ONE TAILED Z TEST IN POSITIVE DIRECTION WITH AN :

CRITICAL VALUE:

The z critical value with is .

DECISION RULE:

.

TEST VALUE:

The test value is .

INFERENCE:

Since the test statistic value (8.56) is greater than the z critical value (2.33), we reject the null hypothesis.


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