BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -The most commonly used significance level is = 0.05. For a two-sided test, we compute 1-/2, or 1-0.05/2 = 0.975 when = 0.05. If the absolute value of the test statistic is greater than the critical value (0.975), then we reject the null hypothesis.

Detailed explanation-2: -For a one-tailed test using the 0.05 level of significance, the critical value for the z test is 1.645, but for t it is 1.96. ii. For a one-tailed test using the 0.01 level of significance, the critical value for the z-test is 1.645, but for t it is 1.96.

Detailed explanation-3: -In the majority of analyses, an alpha of 0.05 is used as the cutoff for significance. If the p-value is less than 0.05, we reject the null hypothesis that there’s no difference between the means and conclude that a significant difference does exist.

Detailed explanation-4: -If you are using a significance level of 0.05, a two-tailed test allots half of your alpha to testing the statistical significance in one direction and half of your alpha to testing statistical significance in the other direction. This means that .025 is in each tail of the distribution of your test statistic.