Explain the significance test at the level of 1% and 5%.
Answer to Problem 17E
It is unknown whether the test is significance at the significant level 0.01.
Explanation of Solution
Significant levels are 1% and 5%.
Convert 1% into decimal.
Convert 5% into decimal.
A significance test at the significant level 0.05indicates that the probability of obtaining the sample value is less than 0.05 when the null hypothesis is true.Thus, the probability can be less than or more than 0.01.
Hence, it is unknown whether the test is significance at the significant level 0.01.
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