TABLE 9-5
A bank tests the null hypothesis that the mean age of the bank's mortgage holders is less than or equal to 45 years, versus an alternative that the mean age is greater than 45 years. They take a sample and calculate a p-value of 0.0202.
-Referring to Table 9-5, the null hypothesis would be rejected at a significance level of α = 0.05.

Question

Quizplus · Accepted Answer

According to Table 9-5, the critical value for a one-tailed test at α = 0.05 is 1.645. Since the calculated p-value of 0.0202 is less than the significance level of 0.05 and falls in the rejection region (p-value < critical value), the null hypothesis would be rejected. Therefore, the answer is A - true.

TABLE 9-5 A Bank Tests the Null Hypothesis That the Mean Age