Question

A hypothesis will be used to test that a population mean equals 7 against the alternative that the population mean does not equal 7 with known variance σ. What are the critical values for the test statistic Upper Z Subscript 0 for the significance level of 0.04? Round your answer to two decimal places (e.g. 98.76).

Answer 1

Answer:

The upper critical value z₀ is 2.05.

Step-by-step explanation:

For a two-sided test like this (the mean can be significantlt greater or smaller than 7 to reject the null hypothesis), the critical values are the values of z that determine the boundaries of rejecting or not the null hypothesis.

If the significance level is 0.04, it means that there is a P-value of 0.02 for z larger than the upper critical value z₀.

$P(z>z_0)=\alpha /2= 0.02$

If we look up in a normal distribution table, the z value that corresponds to this probability is z=2.05.