Solution:
In hypothesis testing we state two hypothesis: Null hypothesis H0 and alternative hypothesis H1.
We assume that null hypothesis is true and trying to reject it by performing test procedure.
Thus we reject null hypothesis H0, if test statistic value fall in critical region also called as rejection region, otherwise we fail to reject null hypothesis.
In given statement, it is said that: z test statistic value is in the critical region, so decision should be taken as: "Reject null hypothesis H0".
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