Question

In: Statistics and Probability

Fill in the blank. A critical? value, z Subscript alpha z??, denotes the? _______. A critical?...

Fill in the blank. A critical? value, z Subscript alpha z??, denotes the? _______. A critical? value, z Subscript alpha z??, denotes the ?

Solutions

Expert Solution

A critical value Z ?    is a point on the curve of the sampling distribution of the test statistic under the null hypothesis beyond which the null hypothesis is rejected at ? % level of significance.

[

Suppose X~Normal(m,sigma2)

we have a random sample X1,X2,...,Xn of size n

where sigma is unknown

we are to test the null hypothesis

H 0: m=m1

Against the alternative hypothesis

H1: m not equal to m1

The test statistic is given by T=[ (xbar-m1)]/[(s/sqrt(n))]

where xbar= sample mean

we estimate sigma by sample variance s

Which under H0 follows t distribution with degrees of freedom (n-1)

We reject H0 against H1 at ? % level of significance if observed value of

|T | > t?/2;(n-1)

where t?/2;(n-1) is upper (?/2) point of t(n-1)distribution.

here t?/2;(n-1) is the critical value of the testing problem.

]

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