Question

For the given null (H) and alternative (H1) hypotheses, compute the maximum value of z that leads to a rejection of the null

Note: do by hand too.

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Answer #1

Alpha = 0.04,

For the z score such that alpha = 0.04, we need to find z such that P(Z < z) = 0.04 where z ~ N(0,1) distribution.

This can be found using normal distribution tables or softwares.

Using one such software, the value comes out to be equal to -1.7506

So, the z score is -1.7506

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