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

question 58

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. We wish to compare the means of two populations using paired observations. Suppose that $\bar { d } = 3.125 , s _ { d } = 2.911$ , and $n = 8$ , and that you wish to tes the following hypothesis at the $10 \%$ level of significance:
$H _ { 0 } : \mu _ { d } = 0$ against $H _ { 1 } : \mu _ { d } > 0 .$
What decision rule would you use?

• A) Reject \(H _ { 0 }\) if the test statistic is greater than -1.145.
• B) Reject \(H _ { 0 }\) if the test statistic is greater than \(1.415 .\)
• C) Reject \(H _ { 0 }\) if the test statistic is greater than \(- 1.145\) or less than \(1.415\).
• D) Reject \(H _ { 0 }\) if the test statistic is less than \(1.415\).

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Definitions:

Units-Of-Production Method

An approach to depreciation that allocates the cost of an asset over its useful life based on its output or usage, rather than the passage of time.

Scrap Value

The estimated resale value of an asset after its useful life is over and it can no longer be used as intended.

Double-Declining-Balance

A method that determines a depreciation amount for the first year that is approximately twice the straight-line rate.

Scrap Value

The predicted revenue from selling an asset at the conclusion of its serviceable life.