A group of gemologists are interested in studying the average money spent on an engagement ring. In 2020, the average money spent was $6,100. Because of COVID-19, the gemologists think the average has increased for 2021. If the gemologists carry out a hypothesis test, what value forms the rejection region? Select the single best answer choice. O alternative hypothesis critical value null hypothesis

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
icon
Related questions
Question
### Hypothesis Testing and The Rejection Region

**Introduction:**
A group of gemologists is interested in studying the average money spent on an engagement ring. In 2020, the average amount spent was $6,100. Due to the effects of COVID-19, the gemologists hypothesize that the average spending has increased in 2021. They decide to carry out a hypothesis test to explore this assumption.

**Question:**
If the gemologists carry out a hypothesis test, what value forms the rejection region? Select the single best answer choice from the options below:

1. Alternative Hypothesis
2. Critical Value
3. Null Hypothesis

*Choose the correct answer to understand the hypothesis testing process better and learn about the concept of the rejection region.*

### Explanation:
- **Null Hypothesis (H0):** A statement that there is no effect or no difference, and it represents the status quo. In this case, the null hypothesis might be that the average money spent in 2021 is still $6,100.
  
- **Alternative Hypothesis (H1):** A statement that contradicts the null hypothesis. It suggests there is an effect or a difference. Here, the alternative hypothesis would be that the average amount spent in 2021 has increased compared to 2020.
  
- **Critical Value:** A threshold value that defines the boundary for rejecting the null hypothesis. It is determined based on the significance level (α) chosen for the test (commonly 0.05). This value forms the "rejection region."

**Answer:**
The **critical value** forms the rejection region. If the test statistic falls into this region, the null hypothesis is rejected in favor of the alternative hypothesis.

Understanding these concepts is crucial for interpreting the results of hypothesis tests and making informed conclusions based on statistical evidence.
Transcribed Image Text:### Hypothesis Testing and The Rejection Region **Introduction:** A group of gemologists is interested in studying the average money spent on an engagement ring. In 2020, the average amount spent was $6,100. Due to the effects of COVID-19, the gemologists hypothesize that the average spending has increased in 2021. They decide to carry out a hypothesis test to explore this assumption. **Question:** If the gemologists carry out a hypothesis test, what value forms the rejection region? Select the single best answer choice from the options below: 1. Alternative Hypothesis 2. Critical Value 3. Null Hypothesis *Choose the correct answer to understand the hypothesis testing process better and learn about the concept of the rejection region.* ### Explanation: - **Null Hypothesis (H0):** A statement that there is no effect or no difference, and it represents the status quo. In this case, the null hypothesis might be that the average money spent in 2021 is still $6,100. - **Alternative Hypothesis (H1):** A statement that contradicts the null hypothesis. It suggests there is an effect or a difference. Here, the alternative hypothesis would be that the average amount spent in 2021 has increased compared to 2020. - **Critical Value:** A threshold value that defines the boundary for rejecting the null hypothesis. It is determined based on the significance level (α) chosen for the test (commonly 0.05). This value forms the "rejection region." **Answer:** The **critical value** forms the rejection region. If the test statistic falls into this region, the null hypothesis is rejected in favor of the alternative hypothesis. Understanding these concepts is crucial for interpreting the results of hypothesis tests and making informed conclusions based on statistical evidence.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Anova and Design of Experiments
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman