Business Statistics

318 Business Statistics

0.0091 (shown in Figure 10.9). For a two-tailed test, this value is multiplied

by 2 (as discussed above). Thus, for a two-tailed test, this value is (0.0091 × 2

= 0.0182). So, the null hypothesis is accepted because (0.01 < 0.0182). It has to

be noted that for  = 0.05 and  = 0.1, the null hypothesis is rejected because

0.0182 < 0.05 and 0.0182 < 0.1.

10.6.2 Critical Value Approach for Hypothesis Testing

In Chapter 9, we have already discussed that z formula for estimating the population mean is

given by

x

z

n

−

=





Sample mean

x

can be greater than or less than the population mean. The above formula ...