In constructing a confidence interval from a manageable sample in order to estimate a population mean at a 0.10 level of significance, the null hypothesis formulated could not be rejected. Therefore, management assumed that the value hypothesized is useful for its decision making. However, if the test had been conducted at a 0.05 level of significance, the same null hypothesis would have been rejected. Why would this be? What is involved in deciding the level of confidence and how does it relate to the sample size and the resources that management should dedicate to hypothesis testing?

College Algebra
1st Edition
ISBN:9781938168383
Author:Jay Abramson
Publisher:Jay Abramson
Chapter9: Sequences, Probability And Counting Theory
Section9.7: Probability
Problem 1SE: What term is used to express the likelihood of an event occurring? Are there restrictions on its...
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In constructing a confidence interval from a manageable sample in order to estimate a population mean at a 0.10 level of significance, the null hypothesis formulated could not be rejected. Therefore, management assumed that the value hypothesized is useful for its decision making. However, if the test had been conducted at a 0.05 level of significance, the same null hypothesis would have been rejected. Why would this be? What is involved in deciding the level of confidence and how does it relate to the sample size and the resources that management should dedicate to hypothesis testing?

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