STATISTICAL TECHNIQUES AND TOOLS
TESTS OF SIGNIFICANCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Do not reject Ho (z=0.76)
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Reject Ho (z=1.45)
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Do not reject Ho (z=1.45)
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Reject Ho (z=0.6)
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Detailed explanation-1: -Null Hypothesis: The correlation between the daily stock price change ($) and the daily stock purchases by non-management employees ($) = 0. Alternative Hypothesis: The correlation between the daily stock price change ($) and the daily stock purchases by non-management employees ($) > 0.
Detailed explanation-2: -In null hypothesis testing, this criterion is called (alpha) and is almost always set to . 05. If there is less than a 5% chance of a result as extreme as the sample result if the null hypothesis were true, then the null hypothesis is rejected. When this happens, the result is said to be statistically significant .
Detailed explanation-3: -Here is a simple example: A school principal claims that students in her school score an average of seven out of 10 in exams. The null hypothesis is that the population mean is 7.0.