Question

question 3
the p - value for a hypothesis test turns out to be 0.05307. at a 7% level of significance, what is the proper decision?
o reject ( h _ { 0 } )
o fail to reject ( h _ { 0 } )
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Explanation:

Step1: Recall p - value decision rule

The decision rule for hypothesis testing using p - value is: If the p - value is less than the significance level (\(\alpha\)), we reject the null hypothesis \(H_0\); if the p - value is greater than or equal to \(\alpha\), we fail to reject \(H_0\).
Here, the significance level \(\alpha = 7\%=0.07\) and the p - value is \(0.05307\).

Step2: Compare p - value and \(\alpha\)

We compare \(0.05307\) and \(0.07\). Since \(0.05307<0.07\) (the p - value is less than the significance level).

Answer:

Reject \(H_0\)