Question

Discuss the role of level of significance and level of confidence interval in testing of research hypotheses. At what level can we accept or reject a tested hypothesis is each case.

Answer 1

Null hypothesis: the parameter takes a certain value and we need to check if the value is significant or not, using the confidence interval

We will construct a confidnece interval using sample values and if the parameter value lie in the interval, the null hypothesis is accepted, otherwise rejected.

using the significance level, we first obtain the corresponding test statistic and then p- value. if the p value < than that of significance level, we reject the null hypothesis, accept otherwise