A two-tailed test of hypothesis has a p-value = 0.0055.The critical value from the test is 0.9800.The type I error probability for the test is 0.01.What is the correct decision for the test and why is this reason correct? A) Reject H₀ because p-value α.

Question

A two-tailed test of hypothesis has a p-value = 0.0055.The critical value from the test is 0.9800.The type I error probability for the test is 0.01.What is the correct decision for the test and why is this reason correct? A) Reject H₀ because p-value < α. B) Do not reject H₀ because p-value < α. C) Reject H₀ because p-value > α. D) Do not reject H₀ because p-value > α.

Quizplus · Accepted Answer

The p-value (0.0055) is less than the significance level (0.01), which means that the probability of obtaining a test statistic as extreme as the one observed or more extreme, assuming the null hypothesis is true, is very low. Therefore, we reject the null hypothesis in favor of the alternative hypothesis. The critical value is not used to make the decision in this case, but it confirms that the rejection region is in the tails of the distribution.

A Two-Tailed Test of Hypothesis Has a P-Value = 0