Explain the Logic of Hypothesis Testing
-Suppose You Want to Test

question 29

Multiple Choice

Explain the Logic of Hypothesis Testing
-Suppose you want to test the claim that $\mu < 65.4$ . Given a sample size of $\mathrm { n } = 35$ and a level of significance of $\alpha = 0.10$ , when should you reject $\mathrm { H } _ { 0 }$ ?

• A) Reject \(\mathrm { H } _ { 0 }\) if the standardized test statistic is less than -1.28.
• B) Reject \(\mathrm { H } _ { 0 }\) if the standardized test is less than \(- 2.33\).
• C) Reject \(\mathrm { H } _ { 0 }\) if the standardized test statistic is less than \(- 2.575\).
• D) Reject \(\mathrm { H } _ { 0 }\) if the standardized test statistic is less than \(- 1.96\).

---

Definitions:

Marginal Utility

The heightened satisfaction or value achieved by consuming one additional unit of a product or service.

Criminal Behavior

Conduct by an individual that violates societal laws and is subject to sanctions and legal penalties.

Probability

A measure of the likelihood that an event will occur, expressed as a number between 0 and 1, where 1 represents certainty.

Marginal Utility

The additional satisfaction or benefit one receives from consuming one more unit of a good or service.