Question

If you want to carry out a statistical test at α = 0.01. to test whether the population mean is equal to 500 or not, using a sample size of 300, with a test statistic of z = 1.97, your conclusion should be_____.Select one:

a. do not reject the null hypothesis

b. reject the null hypothesis

c. only reject when the test statistic is negative

d. not enough information to determine

Answer 1

Solution:

Test statistic value$=z=1.97$

p-value at $\alpha=0.01$ for two-tailed test using z-score table is $(\pm2.58)$

Since, 1.97 lies in this interval, we cannot reject null hypothesis.

Thus, option (a) is correct, i.e., do not reject the null hypothesis.