The standardized test statistic for a test of H0:p=0.4versus Ha:pnotequalto0.4isz=2.43This test is

a. not significant at either α=0.05or α=0.01

b. significant at α=0.05but not atα=0.01

c. significant atα=0.01but not at α=0.05

d. significant at both α=0.05andα=0.01

e. inconclusive because we don’t know the value of p^

Short Answer

Expert verified

The test is significant at α=0.05and α=0.01

The correct option is(b)

Step by step solution

01

Given information

z=2.43

Level of significance (α)=0.05/0.01

The null and alternative hypotheses are as follows:

H0:p=0.4Ha:pisnotequalto0.4

02

The objective is to find the test statistics values at which test is significant 

The -value can be computed as:

p-value=2×P(Z>z)=2×P(Z>2.43)=2×0.0075=0.0150

If the null hypothesis is rejected, the test will be significant.

If the p-value>αnull hypothesis is rejected.

p-value(0.0150)<α(0.05)=Reject the null hypothesis

p-value(0.0150)>α(0.01)=Fail to reject the null hypothesis

At α=0.05the test is considered significant.

Therefore, the correct option is(b)

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