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 (one-tailed or two-tailed). For a two-tailed test, critical values are found at both extremes 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 two-tailed test, this region is divided into two parts, corresponding to the critical values on either side of the distribution. The size of the rejection region is determined by the significance level (α), which indicates the probability of making a Type I error.
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Two-Tailed Test
A two-tailed test is a statistical test that evaluates whether a sample mean is significantly different from a population mean in either direction (greater than or less than). This type of test is used when the alternative hypothesis does not specify a direction of the effect. For a significance level of α = 0.12, the critical values will be located at the 6% and 94% percentiles of the standard normal distribution.
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