Question

The test statistic of z=−1.59 is obtained when testing the claim that p<0.85. a. Using a significance level of α=0.10​, find the critical​ value(s). b. Should we reject H0 or should we fail to reject H0​?

Answer 1

Here we have to test that

Null hypothesis :

Alternative hypothesis:

where

The test statistic of z = −1.59

Significance level = = 0.10

Test is left tailed test.

z critical value for = 0.10 is

z = -1.28 (From statistical table of z values)

z critical value = -1.28

Here test statistic < z critical value

So we reject H0.