Question

P-Values. In Exercises 17–20, do the following:

a. Identify the hypothesis test as being two-tailed, left-tailed, or right-tailed.

b. Find the P-value. (See Figure 8-3 on page 364.)

c. Using a significance level of $\alpha$ = 0.05, should we reject $H_0$or should we fail to reject $H_0$?

The test statistic of z = 2.01 is obtained when testing the claim that $p\ne 0.345$.

Short answer

a. The test is two-tailed.

b. The p-value is equal to 0.0444.

c. The null hypothesis is rejected.

Step-by-step solution

Given Information

A test statistic value of $z=2.01$ is obtained, and the claim to be tested is $p\ne 0.345$.

Identify the hypotheses and tail of the test

a.

In correspondence with the given claim, the following hypotheses are set up:

Null Hypothesis: $p=0.345$

Alternative Hypothesis: $p\ne 0.345$

Since there is a not equal sign in the alternative hypothesis, the test is two-tailed.

P-value

b.

The test statistic to test the given claim is the z-value.

The z-value is equal to 2.01.

Using the standard normal table, the corresponding two-tailed p-value for z-score equal to 2.01 is equal to:

$$\begin{gathered} 2\times P\left(z<2.01\right)=2\times \left(0.0222\right) \\ =0.0444 \end{gathered}$$

Thus, the p-value is equal to 0.0444.

To depict the p-value on the normal probability graph, follow the given steps:

• Plot a horizontal axis representing the z-score. Also, label it as “z-score”.
• Sketch a bell-shaped curve and draw a vertical dotted line corresponding to the value “0” on the horizontal axis
• Mark the points “-2.01” and “2.01” on the horizontal axis and then shade the area to the left of the value “-2.01” and to the right of the value “2.01” with blue as shown in the figure.
• Label the two shaded regions as “p-value = 0.0222”.

The following plot shows the probability value (p-value) as the shaded area under the normal probability graph. Here, the sum of the two p-values corresponds to the requited two-tailed p-value (0.0444).

Decision about the test

c.

If the p-value is less than the level of significance, the null hypothesis is rejected; otherwise, not.

Here, the level of significance is equal to 0.05, and the p-value is equal to 0.0444.

Since the p-value is less than 0.05, the null hypothesis is rejected.