Question: Problem6(RejectionRegion) Find a cutoff on the test statistic such that a decision rule of the form Reject H 0 if the test statistics is larger

Problem6(RejectionRegion)

  1. Find a cutoff on the test statistic such that a decision rule of the form "Reject H0if the test statistics is larger than cutoff or smaller than -cutoff" has at most 5% chance of making a type-I error (false positive, i.e. rejecting H0when it is true).

Answer:

  1. Based on this cutoff on the test statistic, form an equivalent rejection region for the sample statistic. Inotherwords,findtwocutoffsc1andc2suchthatthedecisionruleaboveisequivalenttoadecision rule of the form "Reject H0if the sample statisticXis larger than c1or smaller than c2".

Answer:

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