EBK THE BASIC PRACTICE OF STATISTICS
EBK THE BASIC PRACTICE OF STATISTICS
7th Edition
ISBN: 8220103935319
Author: Moore
Publisher: YUZU
Question
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Chapter 17, Problem 17.21CYS
To determine

The value of H0 by the computed probability.

Expert Solution & Answer
Check Mark

Answer to Problem 17.21CYS

The correct option is (a) true, of the test statistic taking a value as extreme as or more extreme than that actually observed is 0.008.

Explanation of Solution

Given info:

The P-value is 0.008.

Justification:

Reason for correct answer:

Since the definition of P-value says that the probability that the test statistics take the value, which is extreme or more extreme than the actual observed value under the assumption, that H0 is true, thus as the value of P is 0.008, then the test statistic taking a value as extreme as or more extreme than that actually observed is 0.008.

Thus, option (a) H0 is true, of the test statistic taking a value as extreme as or more extreme than that actually observed is 0.008 is correct.

Reason for incorrect answers:

Option (b) says that H0 is true, of the test statistic taking a value as extreme as or less extreme than that actually observed is 0.008 which is incorrect because by the definition of P-value, H0 is true, of the test statistic taking a value as extreme as or more extreme than that actually observed.

Option (c) says that H0 is false, of the test statistic taking a value as extreme as or more extreme than that actually observed is 0.008 which is incorrect because by the definition of P-value, H0 is true, of the test statistic taking a value as extreme as or more extreme than that actually observed.

Thus, options (b) and (c) are incorrect.

Conclusion:

Thus, H0 is true, of the test statistic taking a value as extreme as or more extreme than that actually observed is 0.008.

Statistics Concept Introduction

Introduction:

P-value:

The probability that the test statistics take the value that is extreme or more extreme than the actual observed value under the assumption that H0 is true.

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