Question

Now set up the decision criteria. (Assume α = .01.) This question has two parts: a) state the number of tails; and b) state the critical value(s) of the test statistic.

Answer 1

Solution :-

Given :- = 0.01 Assumed

Decision Criteria --

If p value < -- reject Ho

If p value > -- Fail to reject Ho

a) The No of tails are-

One tailed test

Left tailed

Right tailed

They are called “one tailed” tests because the rejection region (the area where you would reject the null hypothesis) is only in one tail.

Two tailed test

The two tailed test is called a two tailed test because the rejection region can be in either tail.

b)

Decision Criteria --

If the test Statistic Lies in the rejection Region -- Reject Ho.

If the test Statistic do not Lies in the rejection Region -- Fail to Reject Ho.

Critical value are :- = 0.01 ( Given )

Left tailed test -- at = 0.01 is -2.326

Right tailed test -- at = 0.01 is 2.326

Two tailed test -- at = 0.01 is 2.576