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what is the decision rule? Use the 0.05 significance level. Reject H0 if F>


what is the decision rule? Use the 0.05 significance level. Reject H0 if F>
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Answer #1

A decision rule is a procedure that the researcher uses to decide whether to accept or reject the null hypothesis.

The procedure for hypothesis testing is based on the upper, lower and two-tailed test.

It consists of 5 steps

  • Step 1. Set up hypotheses and select the level of significance α.

H0: Null hypothesis  

H1: Alternative hypothesis ; α =0.05

  • Step 2. Select the appropriate test statistic.

An example of a test statistic is the Z statistic computed as follows:

  • Step 3.  Set up decision rule.

The decision rule is a statement that tells under what circumstances to reject the null hypothesis. The decision rule is based on specific values of the test statistic (e.g., reject H0 if Z >1.645 upper tailed test).

  • Step 4. Compute the test statistic.
  • Step 5. Conclusion. - To reject or accept the null hypothesis.
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