Here are the essential concepts you must grasp in order to answer the question correctly.
Critical Value
A critical value is a point on the scale of the test statistic that separates the region where the null hypothesis is rejected from the region where it is not rejected. In hypothesis testing, critical values are determined based on the significance level (α) and the type of test being conducted, such as one-tailed or two-tailed tests.
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Critical Values: t-Distribution
Rejection Region
The rejection region is the range of values for the test statistic that leads to the rejection of the null hypothesis. For a left-tailed test, this region is located to the left of the critical value, indicating that if the test statistic falls within this region, the null hypothesis can be rejected in favor of the alternative hypothesis.
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Level of Significance (α)
The level of significance, denoted as α, is the probability of rejecting the null hypothesis when it is actually true (Type I error). It represents the threshold for determining whether the observed data is statistically significant. In this case, with α = 0.09, it indicates a 9% risk of incorrectly rejecting the null hypothesis.
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Step 4: State Conclusion Example 4