Here are the essential concepts you must grasp in order to answer the question correctly.
Standardized Test Statistic (z)
A standardized test statistic, commonly denoted as z, measures how many standard deviations an element is from the mean. In hypothesis testing, the z-value helps determine whether to reject the null hypothesis by comparing it to critical values from the standard normal distribution.
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Step 2: Calculate Test Statistic
Null Hypothesis (H0)
The null hypothesis (H0) is a statement that there is no effect or no difference, and it serves as the default assumption in hypothesis testing. The goal of statistical tests is to determine whether there is enough evidence to reject H0 in favor of an alternative hypothesis (H1).
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Critical Value
A critical value is a threshold that defines the boundary for rejecting the null hypothesis. In the context of a z-test, if the calculated z-value exceeds the critical value (e.g., 1.285 in the provided image), it indicates that the result is statistically significant, leading to the rejection of H0.
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Critical Values: t-Distribution