Hypothesis Testing: Region of Rejection at 99% Level

The Region of Rejection at the 99% Level

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Question

A statistician has framed his hypothesis testing problem as:

Ho: mean = 0H1: mean > 0 -

For the given sample, he calculates the z-statistic. Then, the region of rejection at the 99% level is given by:

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Explanations

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Since the alternative is directional and to the right, we use a right-tailed test. For this, the critical value at 99% level is +2.32. +2.32 is the value above which only

1% of the probability mass of the standard normal distribution lies). The rejection region is then given by z-statistic > +2.32.

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