If we are performing a one-tailed hypothesis test using a z-test and the level of significance of .05, the critical value is 1.645. How did we find this?
Can you help to explain this answer for me in simplier terms. I do not understand a single word of it. I have no clue what to do with statistics.
Answer:
As the hypothesis test is one-tailed, the level of significance is not split in half and only the positive half of the curve is considered. The complete curve has a value of 1, so half of the curve is .5. We are not looking at that entire half so we must subtract the .05 level of significance, which gives us .450. With this number, it is a matter of reviewing the table of standard normal areas (appendix C-1) by searching the table for the number closest to this one. Once the number is found, the numbers on both axis that correspond with this number are added together to reach the critical value level. Because our number falls between two numbers listed, the critical value falls between the two points (1.64 and 1.65).
Can you help to explain this answer for me in simplier terms. I do not understand a single word of it. I have no clue what to do with statistics.
Answer:
As the hypothesis test is one-tailed, the level of significance is not split in half and only the positive half of the curve is considered. The complete curve has a value of 1, so half of the curve is .5. We are not looking at that entire half so we must subtract the .05 level of significance, which gives us .450. With this number, it is a matter of reviewing the table of standard normal areas (appendix C-1) by searching the table for the number closest to this one. Once the number is found, the numbers on both axis that correspond with this number are added together to reach the critical value level. Because our number falls between two numbers listed, the critical value falls between the two points (1.64 and 1.65).