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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fail to reject H0
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reject H0
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cannot make any decision at all because the value of the test statistic is not available
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cannot make any decision at all because the distribution of the population is unknown
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cannot make any decision at all because (1.4, 3.6) is only a 95% confidence interval for µ
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Detailed explanation-1: -The significance level, also denoted as alpha or , is the probability of rejecting the null hypothesis when it is true. For example, a significance level of 0.05 indicates a 5% risk of concluding that a difference exists when there is no actual difference.
Detailed explanation-2: -The 95% confidence interval for µ is the set of values, µ0, such that the null hypothesis H0 : µ = µ0 would not be rejected (by a two-sided test with = 5%). The 95% CI for µ is the set of plausible values of µ. If a value of µ is plausible, then as a null hypothesis, it would not be rejected.
Detailed explanation-3: -The classical procedure for testing a null hypothesis is to fix a small significance level and then require that the probability of rejecting H0 when H0 is true is less than or equal to .