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A 96% confidence interval for the mean is reported as (0.8, 2.3) for a set of...

A 96% confidence interval for the mean is reported as (0.8, 2.3) for a set of data. Suppose we want to conduct a two-sided significance test with the null hypothesis Ho: μ = 0 using the computed confidence interval.

1) What level of significance would be used in the test of significance ?

2) Are the results statistically significant? Fully justify why/why not.

Math   Statistics-And-Probability   
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Answer #1

1) What level of significance would be used in the test of significance ?

Answer: We are given the level of significance as 0.04 or 4% for the test of significance.

Explanation:

We are given

Confidence level = c = 96% = 0.96

Significance level = α = 1 - c = 1 - 0.96 = 0.04 = 4%

Answer: 0.04 or 4%

2) Are the results statistically significant? Fully justify why/why not.

Answer: The results are statistically significant, because the given interval (0.8, 2.3) does not include the value zero. If the corresponding interval does not include the hypothesized value, then we reject the null hypothesis.

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