Determine whether you would reject or fail to reject the null hypothesis in
the following situations:
a. z = 1.99, two-tailed test at α = 0.05
b. z = 0.34, z* = 1.645
c. p = 0.03, α = 0.05
d. p = 0.015, α = 0.01
Solution,
a) This is two tailed test,
α = 0.05
z = 1.99
P( z > 1.99)
= 1 - P( z < 1.99)
= 1 - 0.9767
= 0.0233
P-value = 2 * P( z > 1.99)
= P-value = 2 * 0.0233
= P-value = 0.0466
Rejected the null hypothesis because P-value < 0.05
b) z = 0.34
z* = 1.645
Fail to rejected the null hypothesis because z value < z*
c) P-value = 0.03
α = 0.05
Rejected the null hypothesis because P-value < 0.05
d) P-value = 0.015
α = 0.01
Fail to rejected the null hypothesis because P-value > 0.05
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