Determine the Decision Criterion for Rejecting the Null Hypothesis in the Given

question 86

Multiple Choice

Determine the decision criterion for rejecting the null hypothesis in the given hypothesis test; i.e., describe the values of the test statistic that would result in rejection of the null hypothesis.
-A farmer has decided to use a new additive to grow his crops. He divided his farm into 10 plots and kept records of the corn yield (in bushels) before and after using the additive. The results are shown below.
$\begin{array}{lcccccccccc}\text { Plot: } & 1 & 2 & 3 & 4 & 5 & 6 & 7 & 8 & 9 & 10 \\\hline \text { Before } & 9 & 9 & 8 & 7 & 6 & 8 & 5 & 9 & 10 & 11 \\\text { After } & 10 & 9 & 9 & 8 & 7 & 10 & 6 & 10 & 10 & 12\\\hline\end{array}$
You wish the test the following hypothesis at the 10 percent level of significance.
$\mathrm { H } _ { 0 } : \mu _ { \mathrm { d } } = 0$ against $\mathrm { H } _ { 1 } : \mu _ { \mathrm { d } } > 0$ .
What decision rule would you use?

• A) Reject \(\mathrm { H } _ { 0 }\) if test statistic is greater than 1.383.
• B) Reject \(\mathrm { H } _ { 0 }\) if test statistic is greater than \(- 1.383\).
• C) Reject \(\mathrm { H } _ { 0 }\) if test statistic is less than 1.383.
• D) Reject \(\mathrm { H } _ { 0 }\) if test statistic is greater than \(- 1.383\) or less than \(1.383\).

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Definitions:

Calendar Year

The period from January 1st to December 31st, used for financial and administrative purposes.

Factoring

A financial transaction where a business sells its accounts receivable to a third party at a discount to obtain immediate cash.

Accounts Receivables

Liabilities of customers towards a business for commodities or assistance that have been executed or utilized, waiting to be paid.

Collecting Accounts

The process of managing the collection of revenues or receivables from clients or customers.