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Suppose you have a two sided hypothesis test, Ha: ? ? ?0 with a test statistic...

Suppose you have a two sided hypothesis test, Ha: ? ? ?0 with a test statistic z=2.70.  Determine the p-value and give the decision of this test. Use a 5% level of significance.

a) P-value of 0.0035, reject the null hypothesis.
b) P-value of 0.0035, fail to reject the null hypothesis.

c) P-value of 0.9931, fail to reject the null hypothesis.

d) P-value of 0.0069, reject the null hypothesis.

Math   Statistics-And-Probability   
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Answer #1

The p-value of a two sided test is given by

or

In this case as test statistics is greater than 0, we will use the first formula to find p-value. The second formula in this case will give a p-value greater than 1, which is not possible.

As the p-value is less than 0.05, we have sufficient evidence to reject the null hypothesis.

d) P-value of 0.0069, reject the null hypothesis.

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