Exercise · ZW-HYPOTHESIS-TEST-002 · ★☆☆ Basic

With \(z=1.5\), a two-sided test and \(\alpha=0.05\) (critical value \(1.96\)), what is the decision?

Choose one option.

Show answer
  • A. Do not reject \(H_0\)

Explanation

Since \(|1.5|<1.96\), the statistic falls outside the rejection region and \(H_0\) is not rejected.

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Review the concept: Hypothesis test

A hypothesis test is a rule that, from sample data, decides whether to reject the null hypothesis \(H_0\), which fixes a value \(\theta_0\) for a parameter \(\theta\), in favor of the alternative \(H_1\).

\[H_0:\theta=\theta_0\quad\text{versus}\quad H_1:\theta\ne\theta_0\]

More practice problems: hypothesis test

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