Question

A decision maker wishes to test the following null and alternative hypotheses using an alpha level equal to 0.05:

H0: μ1- μ2= 0

HA: μ1- μ2≠ 0

The population standard deviations are assumed to be known. After collecting the sample data, the test statistic is computed to be z = 1.78

Using the p-value approach, what decision should be reached about the null hypothesis?

A) Since p-value = 0.0018 < α/2 = 0.025, reject the null hypothesis

B) Since p-value = 0.0415 > α/2 = 0.025, do not reject the null hypothesis.

C) Since p-value = 0.0033 < α/2 = 0.025, reject the null hypothesis.

D) Since p-value = 0.0375 > α/2 = 0.025, do not reject the null hypothesis.

Answer

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