In: Statistics and Probability
Answer)
True
As in a 2 sided test, critical values are same used for confidence interval
And rejection region is on two tails same as confidence interval
For example
We have a two sided hypothesis
Ho : u = 5
Ha : u not equal to 5
We are given with the population s.d as 1
and sample size of 9 resulted in a mean of 6
As the population s.d is mentioned we can use standard normal z table to conduct the test and construct the interval as well
Test statistics z = (sample mean - claimed mean)/(s.d/√n)
Z = (6 - 5)/(1/√9) = 3
Suppose confidence level is 95%
So alpha = 1 - 0.95 = 0.05
From z table, P(z<-1.96) = P(z>1.96) = 0.025 (0.05/2)
Rejection region is reject Ho if test statistics is less than -1.96 or greater than 1.96
So reject Ho as 3 > 1.96
Now we will test it using confidence level
Critical value z is 1.96
Margin of error (MOE) = Z*S.D/√N = 1.96*1/√9 = 0.65
Interval is given by
(Mean - moe, mean + moe)
(5.35, 6.65)
As interval do not contain the null hypothesised value 5, we reject the null hypothesis Ho