Find the P-value for the indicated hypothesis test with the given standardized test statistic, z. Decide whether to reject H0 for the given level of significance. Two-tailed test with test statistic z= -1.94 and = 0.07.
P-value = ?

Reject H0 as the critical region for alpha = 0.07 is  z ≤ -1.82  and z≥ 1.82

Step-by-step explanation:

For the significance level ∝ = 0.07

For a two tailed test we divide it with 2 and get 0.035

When we subtract 0.035 from 1 we get 0.965

And when we look at the z- table and corresponding to 0.965 we find the value of z to be 1.82

Now the calculated value of z=  -1.94 which is less than ±1.82.

Hence reject H0 if z ≤ -1.82  and z≥ 1.82

Therefore reject H0.

While ∝ =0.07

p- value = 0.06 should be examined

the p- value is the smallest value of ∝ where we reject H0.

Hence at ∝= 0.06  critical region is  z ≤ -1.88  and z≥ 1.88

At ∝= 0.05  critical region is  z ≤ -1.96  and z≥ 1.96

So p- value is near 0.06