The following are the competing hypotheses and the relevant summary statistics: Η₀: / ≤ 1, Η_A: / 1. The p-value associated with the value of the test statistic is 0.3692. At the 5% significance level, which of the following conclusions is correct? A) We reject the null hypothesis and conclude the first variance is larger than the second. B) We do not reject the null hypothesis and conclude the first variance is larger than the second. C) We reject the null hypothesis and cannot conclude the first variance is larger than the second. D) We do not reject the null hypothesis and cannot conclude the first variance is larger than the second.

Question

The following are the competing hypotheses and the relevant summary statistics: Η₀: / ≤ 1, Η_A: / > 1. The p-value associated with the value of the test statistic is 0.3692. At the 5% significance level, which of the following conclusions is correct? A) We reject the null hypothesis and conclude the first variance is larger than the second. B) We do not reject the null hypothesis and conclude the first variance is larger than the second. C) We reject the null hypothesis and cannot conclude the first variance is larger than the second. D) We do not reject the null hypothesis and cannot conclude the first variance is larger than the second.

Quizplus · Accepted Answer

Since the p-value (0.3692) is greater than the significance level of 0.05, we fail to reject the null hypothesis. Therefore, we cannot conclude that the first variance is larger than the second. Choice D is the correct conclusion.

The Following Are the Competing Hypotheses and the Relevant Summary