Consider the null hypothesis, H0: µ = 4,000, at the 1% level of significance. If the z-test statistic is calculated to be 6.00, which of the following would be the correct decision regarding the null hypothesis?a. Do not reject H0b. reject H0c. Reject H1d. None apply

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Answer:

Option B) Reject null hypothesis      

Step-by-step explanation:

We are given the following in the question:

We are given the null hypothesis:

[tex]H_0 = 4,000[/tex]

[tex]\alpha = 0.01[/tex]

[tex]z_{stat} = 6.00[/tex]

Two tailed z-test

Now, [tex]z_{critical} \text{ at 0.01 level of significance } = \pm 2.58[/tex]

Since,  

The calculated z-statistic does not lie in the acceptance region, we fail to accept and reject the null hypothesis.

Left-tailed z-test

Now, [tex]z_{critical} \text{ at 0.01 level of significance } = -2.58[/tex]

Since,  

[tex]z_{stat} > z_{critical}[/tex]

We fail to accept and reject the null hypothesis.

Right-tailed z-test

Now, [tex]z_{critical} \text{ at 0.01 level of significance } = 2.58[/tex]

Since,  

[tex]z_{stat} > z_{critical}[/tex]

We fail to accept and reject the null hypothesis.