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Testing of hypothesis

1. The graph portrays the decision criterion for a hypothesis.

Determine the significance level.

2. Assume that the data has a normal distribution and the number of observations is greater than fifty. Find the critical z value used to test a null hypothesis if:
= 0.05 and the test is right-tailed.

3. Use the given information to find the P-value.
The test statistic in a right-tailed test is z = 0.52.
4. For large numbers of degrees of freedom, the critical values can be approximated as follows: (attached)

Where k is the number of degrees of freedom and z is the critical value. To find the lower critical value, the negative z-value is used, to find the upper critical value, the positive z-value is used. Use this approximation to estimate the critical value of in a right-tailed hypothesis test with n=132 and =0.01
Round to the nearest three decimal places.

See attached file for full problem description.

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Solution Summary

Step by step method for testing the hypothesis under 5 step approach is discussed here. Calculation of p value, critical value and test statistic are discussed in detail.

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