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Suppose we are conducting a hypothesis test with the following hypotheses:H0: p = 0.7H1: p > 0.7Furthermore suppose we get a p-value of 0.07 while using = 0.05, which of the following is the correct decision?a.At the 5% level of significance, there is significant evidence to reject H1 and retain H0.  b.At the 5% level of significance, there is significant evidence to retain H0c.At the 5% level of significance, there is significant evidence to reject H0 in favour of H1.  d.At the 5% level of significance, there is not significant evidence to reject H0.

Question

Suppose we are conducting a hypothesis test with the following hypotheses:H0: p = 0.7H1: p > 0.7Furthermore suppose we get a p-value of 0.07 while using = 0.05, which of the following is the correct decision?a.At the 5% level of significance, there is significant evidence to reject H1 and retain H0.  b.At the 5% level of significance, there is significant evidence to retain H0c.At the 5% level of significance, there is significant evidence to reject H0 in favour of H1.  d.At the 5% level of significance, there is not significant evidence to reject H0.

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Solution

d. At the 5% level of significance, there is not significant evidence to reject H0.

This is because the p-value of 0.07 is greater than the significance level of 0.05. In hypothesis testing, if the p-value is less than or equal to the significance level, we reject the null hypothesis (H0). If the p-value is greater than the significance level, we do not reject the null hypothesis. In this case, the p-value is greater than the significance level, so we do not reject H0.

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Similar Questions

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