Statistics

Question 3) 

If you lower the level of significance to alpha = 0.01 does your decision change? Explain your reasoning.

α = 0.01, α/2 = 0.01/2

Critical value, Z( α/2) = normsinv (.01/2) = - 2.75 (approximately)

Also, 1-α/2 = 1 - (0.01/2)

Z(1- α/2) = normsinv (1 – (0.01/2)) = 2.75 (approximately)

Z = 5.46 (as calculated from part 2 d))

Since z > z(α/2), reject null hypothesis at 1% level of significance. And conclude that Body temperature of adults is not equal to 98.6

Thus at 1% level of significance our decision doesn’t change.