Question

Hi! I am on question 6E in chapter 11 and was wondering what the difference was between the critical value and the calculated value?

Answer 1

Calculated value: It is calculated based upon the sampling distribution of the statistics.

For examples Z value,t value, Chi-squared value etc.

Critical value: Critical value is nothing but a cutoff value for the particular type of test at specific level of significance. Which determines whether to accept or reject the null hypothesis depending upon where the test statistics (Calculated value) lies.

Rejection rule:

For left tail test

Reject null hypothesis if:

Calculated value<Critical value

Reject null hypothesis if:

Calculated value>Critical value