Determine whether to reject or fail to reject H0 at the level of significance of a) α = 0.06 and b) α = 0.09.
H0: µ = 110, Ha: µ ≠ 110, and P = 0.0769.
Solution:-
a) Do you reject or fail to reject H0 at the 0.06 level of significance?
When you assume the null hypothesis is true, a P-value of a hypothesis test is the probability of obtaining a sample with a value as extreme or more extreme that the one determine from the sample data.
If the P-value is less than or equal to the level significance, than reject H0. If the P-value is greater than the value of significance, than fail to reject H0.
Fail to reject H0 because 0.0769 > 0.06.
b) Do you reject or fail to reject H0 at the 0.09 level of significance?
If the P-value is less than or equal to the level of significance, than reject H0. If the P-value is greater than the level of significance, than fail to reject H0.
Reject H0 because 0.0769 < 0.09.