Test Statistic and Critical Value The statistics for the sample data in Exercise 1 are n = 15, x_bar = 6.133333, and s = 8.862978, where the units are millions of dollars. Find the test statistic and critical value(s) for a test of the claim that the salaries are from a population with a mean greater than 5 million dollars. Assume that a 0.05 significance level is used.
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- 1. Intro to Stats and Collecting Data1h 14m
- 2. Describing Data with Tables and Graphs1h 56m
- 3. Describing Data Numerically2h 5m
- 4. Probability2h 17m
- 5. Binomial Distribution & Discrete Random Variables3h 6m
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- 7. Sampling Distributions & Confidence Intervals: Mean3h 23m
- Sampling Distribution of the Sample Mean and Central Limit Theorem19m
- Distribution of Sample Mean - ExcelBonus23m
- Introduction to Confidence Intervals15m
- Confidence Intervals for Population Mean1h 18m
- Determining the Minimum Sample Size Required12m
- Finding Probabilities and T Critical Values - ExcelBonus28m
- Confidence Intervals for Population Means - ExcelBonus25m
- 8. Sampling Distributions & Confidence Intervals: Proportion2h 10m
- 9. Hypothesis Testing for One Sample5h 8m
- Steps in Hypothesis Testing1h 6m
- Performing Hypothesis Tests: Means1h 4m
- Hypothesis Testing: Means - ExcelBonus42m
- Performing Hypothesis Tests: Proportions37m
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- Performing Hypothesis Tests: Variance12m
- Critical Values and Rejection Regions28m
- Link Between Confidence Intervals and Hypothesis Testing12m
- Type I & Type II Errors16m
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9. Hypothesis Testing for One Sample
Critical Values and Rejection Regions
Problem 7.2.26
Textbook Question
Finding Critical Values and Rejection Regions In Exercises 23–28, find the critical value(s) and rejection region(s) for the type of z-test with level of significance α. Include a graph with your answer.
Right-tailed test, α = 0.08
Verified step by step guidance1
Step 1: Understand the problem. This is a right-tailed z-test with a significance level (α) of 0.08. A right-tailed test means the rejection region is in the right tail of the standard normal distribution.
Step 2: Recall the relationship between the significance level (α) and the critical value. The critical value is the z-score that corresponds to the cumulative probability of 1 - α in the standard normal distribution.
Step 3: Use a z-table or statistical software to find the z-score that corresponds to a cumulative probability of 1 - α = 1 - 0.08 = 0.92. This z-score is the critical value for the test.
Step 4: Define the rejection region. For a right-tailed test, the rejection region consists of all z-scores greater than the critical value. This means if the test statistic falls in this region, you reject the null hypothesis.
Step 5: Visualize the rejection region on a standard normal distribution graph. Mark the critical value on the horizontal axis, shade the area to the right of this value to represent the rejection region, and label the area as α = 0.08.
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Key Concepts
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 beyond which we reject the null hypothesis. In hypothesis testing, it is determined based on the significance level (α) and the type of test (one-tailed or two-tailed). For a right-tailed test, the critical value corresponds to the z-score that marks the threshold for the upper tail of the distribution.
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Rejection Region
The rejection region is the range of values for the test statistic that leads to the rejection of the null hypothesis. In a right-tailed test, this region is located to the right of the critical value. It represents the area under the curve where the probability of observing a test statistic is less than the significance level (α), indicating that the observed result is statistically significant.
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Step 4: State Conclusion
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 is a threshold set by the researcher before conducting the test, commonly used values are 0.05, 0.01, and in this case, 0.08. The choice of α influences the critical value and the size of the rejection region, impacting the test's sensitivity.
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