How to Choose the Level of Significance: A Pedagogical …

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3 nX n X Z 0.5 2/ , where X is the sample mean. At the 5% level of significance, H0 is rejected if Z is greater than the critical value of 1.645 or X is greater than 2(1. 645 )/ n.Note that the Z statistic is an increasing function of sample size or the critical value for X is a …

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