METHODS OF DATA ANALYSIS
DECISION MAKING WITH HYPOTHESIS TESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Critical region
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Critical values
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Hypothesis testing
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Level of significance
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Detailed explanation-1: -A rejection region (also called a critical region) is an area of a graph where you would reject the null hypothesis if your test results fall into that area. In other words, if your results fall into that area then they are statistically significant.
Detailed explanation-2: -➢ To determine the critical region for a t-distribution, we use the table of the t-distribution. (Assume for the moment that we use a t-distribution with 20 degrees of freedom). If the level of significance is = . 10, then for a one tailed test t =-1.325 or t = 1.325.
Detailed explanation-3: -A critical value separates the rejection region from the non-rejection region. The significance level (denoted by ) is the probability that the test statistic will fall in the critical region when the null hypothesis is actually true.