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A Decision Maker Wishes to Test the Following Null and Alternative

Question 46

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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 test statistic approach, what conclusion should be reached about the null hypothesis?


A) Because z = 2.40 > 1.96, we reject the null hypothesis.
B) Because z = 2.03 > 1.96, we reject the null hypothesis.
C) Because z = 1.78 < 1.96, we do not reject the null hypothesis.
D) Because z = 1.45 < 1.645, we do not reject the null hypothesis.

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