Question

Assume that the significance level is alpha equals 0.05. Use the given information to find the? P-value and the critical? value(s). The test statistic of z = -1.07 is obtained when testing the claim that p greater than 0.4.

Answer 1

Given:

= 0.05, Test statistic: Z = -1.07

Hypothesis:

Ho: P = 0.4

Ha: P > 0.4 (Right tailed test)

Critical value:

Z = 1.645 .........................Using standard Normal table

P-value: 0.14231

Conclusion:

Using P-value:

P-value > , i.e. 0.14231 > 0.05, That is Fail to Reject Ho at 5% level of significance.

OR

Using Critical value:

Test statistic < Critical value, i.e. -1.07 < 1.645, That is Fail to Reject Ho at 5% level of significance.