The critical value of t is the value that a t-statistic must exceed in order to
A) reject the hypothesis that the true value of a parameter equals zero.
B) accept the hypothesis that the estimated value of parameter equals the true value.
C) reject the hypothesis that the estimated value of the parameter equals the true value.
D) reject the hypothesis that the estimated value of the parameter exceeds the true value.

Question

Quizplus · Accepted Answer

The critical value of t is based on the level of significance and degrees of freedom and represents the point beyond which we can reject the hypothesis that the true value of a parameter equals zero. It is commonly used in hypothesis testing for sample means, where we compare the sample mean to a hypothesized population mean. If the calculated t-statistic is greater than the critical value of t, we reject the null hypothesis and conclude that there is evidence to support the alternative hypothesis.

The Critical Value of T Is the Value That a T-Statistic