Quiz 5 SIE 305 Fall 2014

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Instructions: one 3 x 5 note card, calculator, probability tables, closed book.
Let the test statistic Z have a standard normal distribution (ie. Z~N(0,1)) when H o is
true. Give the significance level for each of the following situations:

a.) Ho: > o, rejection region Z > 1.96

=P ( Z >1.96 ) =1 ( 1.96 ) =.025=2.5

b.) Ho: < o, rejection region Z < -2.5

=P ( Z <2.5 )= (2.5 ) =.0062=0.62

c.) Ho: = o, rejection region Z > 3.1.or Z<-3.1

=P ( Z >3.1 ) + P ( Z <3.1 )=1 (3.1 ) + (3.1 )=0.001+ 0.001=0.002=0.2