In a hypothesis testing problem, the decision as to whether the null hypothesis should be rejected or not can be made by comparing the level of significance and the observed level of significance. The null hypothesis should be rejected if:
A) the level of significance is bigger than the (nonzero) observed level of significance
B) the level of significance is equal to one half of the (nonzero) observed level of significance
C) the level of significance is smaller than the (nonzero) observed level of significance
D) the level of significance is greater than one half of the (nonzero) observed level of significance
E) none of the above
Solution:
Given: In a hypothesis testing problem, the decision as to whether the null hypothesis should be rejected or not can be made by comparing the level of significance and the observed level of significance.
the observed level of significance is also called as p-value.
If p-value is less than or equal to specified level of significance , we reject null hypothesis.
that is if specified level of significance is bigger than p-value ( he observed level of significance), we reject null hypothesis.
Thus correct answer is:
A) the level of significance is bigger than the (nonzero) observed level of significance
Get Answers For Free
Most questions answered within 1 hours.