Answer:
Reject H0 as the critical region for alpha = 0.07 is z ≤ -1.82 and z≥ 1.82
Step-by-step explanation:
For the significance level ∝ = 0.07
For a two tailed test we divide it with 2 and get 0.035
When we subtract 0.035 from 1 we get 0.965
And when we look at the z- table and corresponding to 0.965 we find the value of z to be 1.82
Now the calculated value of z= -1.94 which is less than ±1.82.
Hence reject H0 if z ≤ -1.82 and z≥ 1.82
Therefore reject H0.
While ∝ =0.07
p- value = 0.06 should be examined
the p- value is the smallest value of ∝ where we reject H0.
Hence at ∝= 0.06 critical region is z ≤ -1.88 and z≥ 1.88
At ∝= 0.05 critical region is z ≤ -1.96 and z≥ 1.96
So p- value is near 0.06
