The critical value is a key concept in hypothesis testing that helps determine the cutoff point for deciding if a test statistic is significant. When conducting a t-test, the critical value indicates the threshold beyond which we reject the null hypothesis. It is closely associated with the significance level, denoted as \(\alpha\), which reflects the probability of making a Type I error (rejecting a true null hypothesis).
- For an upper one-tailed test with \(\alpha = 0.05\) and \(d f = 11\), the critical value is found at the 0.05 significance level, giving us \(1.796\).
- In a two-tailed test with \(\alpha = 0.05\) and \(d f = 7\), the critical value is split between the tails; hence we use \(\alpha/2 = 0.025\), resulting in critical values of \(\pm 2.365\).
- For a lower one-tailed test with \(\alpha = 0.01\) and \(d f = 15\), the critical value is found at \(-2.602\), being a negative value because we are considering the lower end of the t-distribution.
Understanding how to determine the critical value is crucial as it directly influences the decision about the null hypothesis.