To determine whether to reject \( H_0: \mu = 52 \) in favor of \( H_1: \mu > 52 \) with a significance level of \( \alpha = 0.05 \) and a test statistic of \( z = 1.97 \), we need to compare the test statistic to the critical value for a one-tailed test at the 0.05 significance level.
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Find the critical z-value: For a significance level of \( \alpha = 0.05 \) in a one-tailed test, the critical z-value (z-critical) can be found using z-tables or standard normal distribution calculators. The critical value for \( \alpha = 0.05 \) is approximately \( z = 1.645 \).
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Compare the test statistic to the critical z-value:
- Test statistic \( z = 1.97 \)
- Critical z-value \( z_{\text{critical}} = 1.645 \)
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Decision Rule:
- If \( z > z_{\text{critical}} \), we reject \( H_0 \).
- If \( z \leq z_{\text{critical}} \), we do not reject \( H_0 \).
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Applying the decision rule:
- Since \( 1.97 > 1.645 \), we reject \( H_0 \).
Conclusion: Based on the test statistic \( z = 1.97 \) being greater than the critical value of \( 1.645 \), we reject the null hypothesis \( H_0 \). There is sufficient evidence to support the alternative hypothesis \( H_1: \mu > 52 \) at the \( 0.05 \) significance level.