Problem 977

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.

 

 

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