A test of Hv0 : u =1 versus Hv1 : u does not=1 is performed using a significance level of a=0.10. The P-value is 0.03.

Is Hv0 rejected?
Since P [> or <] a, we [reject or not?]

5 answers

To determine whether to reject the null hypothesis \( H_0: \mu = 1 \) based on the given P-value and significance level, you compare the P-value to the significance level \( \alpha = 0.10 \).

Here, the P-value is 0.03, which is less than \( \alpha = 0.10 \).

Since \( \text{P-value} < \alpha \), you reject the null hypothesis \( H_0 \).

So, your final answer would be:

  • Yes, \( H_0 \) is rejected.
  • Since \( \text{P-value} < \alpha \), we reject \( H_0 \).
(b) If the true value of u is 4, is the result a Type 1 error, a Type 2 error, or a correct decision?

To understand whether the result is a Type I error, a Type II error, or a correct decision, let’s first clarify each term:

  1. Type I Error: This occurs when the null hypothesis is rejected when it is actually true.
  2. Type II Error: This occurs when the null hypothesis is not rejected when it is actually false.
  3. Correct Decision: This occurs when the null hypothesis is rejected (or not rejected) correctly based on the true state of the hypothesis.

In your scenario:

  • The null hypothesis \( H_0: \mu = 1 \) is rejected based on the P-value of 0.03.
  • The true value of \( \mu \) is 4.

Since you rejected the null hypothesis \( H_0 \) (which is true according to your rejection decision), and the true value of \( \mu \) is indeed different from 1 (it is 4), your decision to reject \( H_0 \) is actually correct because the null hypothesis is false.

Therefore, since you correctly rejected a false null hypothesis, the result is a correct decision.

So the answer to your question is:

  • Correct Decision.
(b) If the true value of u is 1, is the result a Type 1 error, a Type 2 error, or a correct decision?

In this scenario, if the true value of \( \mu \) is 1, we can analyze the outcome based on your previous results:

  1. Null Hypothesis (\( H_0 \)): \( \mu = 1 \)
  2. Alternative Hypothesis (\( H_1 \)): \( \mu \neq 1 \)
  3. Decision: You rejected the null hypothesis \( H_0 \) based on the P-value of 0.03.

Since the true value of \( \mu \) is indeed 1 (making the null hypothesis true), and you rejected that null hypothesis, you have made an error in your decision.

This situation falls under the definition of a Type I Error, which occurs when the null hypothesis is incorrectly rejected when it is actually true.

So the answer to your question is:

  • Type I Error.