A Decision Maker Wishes to Test the Following Null and Alternative

question 52

Multiple Choice

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.