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- Using the critical value approach, should you reject the null hypothesis or not reject the null hypothesis? Explain. After making your decision, restate it in non-technical terms and make a conclusion about the original claim.
Answer and Explanation:
To determine if I should reject or not reject the null hypothesis, I will need to compare my test statistic and my critical value. My test statistic is = -2.584 and my CV = -1.649. This would be: -2.548 < -1.649 This means that the test statistic falls in the critical region also known as the rejection region and the null hypothesis should be rejected. Since I reject the null hypothesis, it means that the average salary for all jobs in Minnesota does not equal $75,000. This proves my alternative hypothesis to be true, meaning that the average salary for all jobs in Minnesota will be less than $75,000. To restate it in non -technical terms and make a conclusion on the original claim would be written as: There is sufficient evidence to support the claim that the average salary for all jobs in Minnesota is less than $75,000.