We wish to test the hypothesis that μ≥0 at the 4% level using a sample of...

We wish to test the hypothesis that μ≥0 at the 4% level using a sample of 60 observations. The rejection region for this test is:

Below -1.75
Above 1.75
Below -2.05
Above 2.05

Solutions

Expert Solution

Answer: Above 1.75

Explanation:

Here level of significance is 4% = 0.04, Hence we find this probability in normal distribution table.

Hence the critical value for one tailed is 1.75

Hence if the alternative hypothesis is lower tailed(μ<0) then we reject H0 if test staistics is below -1.75, And if the alternative hypothesis is upper tailed(μ≥0) then we reject H0 if test staistics is above 1.75.

Here our hypothesis that μ≥0 , so rejection region is Above 1.75

orchestra answered 11 months ago

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