Question

When we test Upper H 0​: muequals0 against Upper H Subscript a​: mugreater than​0, we get a​ P-value of 0.03. a. What would the decision be for a significance level of 0.10​? Interpret in context. b. If the decision in​ (a) is in​ error, what type of error is​ it? c. Suppose the significance level were instead 0.01. What decision would you​ make, and if it is in​ error, what type of error is​ it?

Answer 1

Answer:

(a) The null hypothesis will be rejected.

(b) Type I error

(c) The null hypothesis will not be rejected. The error is type II error.

Step-by-step explanation:

The hypothesis provided is:

$H_{0}: \mu = 0\\ H_{a} : \mu > 0$

The p-value of the test obtained is 0.03

(a)

Decision rule for hypothesis testing, based on p-value, states that if the p-value is less than the significance level (α) then the null hypothesis is rejected and vice versa.

The significance level is α = 0.10

Then,

$p-value = 0.03 < \alpha = 0.10$

Thus, the null hypothesis will be rejected.

Conclusion:

The null hypothesis is rejected stating that the value of μ is more than 0.

(b)

If the decision in​ (a) is an​ error, i.e. the null hypothesis is rejected when in fact it is true, this type of error is known as type I error.

(c)

The significance level is α = 0.01

Then,

$p-value = 0.03 > \alpha = 0.01$

Thus, the null hypothesis will not be rejected.

Conclusion:

The null hypothesis was not rejected stating that the value of μ is 0.

If this decision is an error, i.e. the null hypothesis was not rejected when in fact it is false, this type of error is known as type II error.